By Devika Patel
Knoxville, Tenn., June 16 - Oro Gold Resources Ltd. said it will raise C$4 million in a private placement of units.
The company will sell 5,715,000 units at C$0.70 per unit. Each unit consists of one common share and one half-share warrant. Each whole warrant will be exercisable at C$1.00 for 18 months.
The deal will be conducted by a syndicate of underwriters led by Wellington West Capital Markets Inc. The underwriters have a C$4 million greenshoe.
Settlement is expected July 7.
Proceeds will be used for exploration and development on the company's Trinidad gold property in Mexico and for working capital and general corporate purposes.
Vancouver, B.C.-based Oro is a gold exploration company with 13 projects in Mexico and Panama.
Issuer: | Oro Gold Resources Ltd.
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Issue: | Units of one common share and one half-share warrant
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Amount: | C$4,000,500
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Greenshoe: | C$4,000,500, or 5,715,000 units
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Units: | 5,715,000
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Price: | C$0.70
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Warrants: | One half-share warrant per unit
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Warrant expiration: | 18 months
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Warrant strike price: | C$1.00
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Underwriter: | Wellington West Capital Markets Inc. (lead)
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Pricing date: | June 16
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Settlement date: | July 7
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Stock symbol: | TSX Venture: OGR
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Stock price: | C$0.84 at close June 15
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Market capitalization: | C$23.6 million
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