By Devika Patel
Knoxville, Tenn., June 17 - Oro Gold Resources Ltd. said it has increased a private placement of units to C$9.03 million. The deal priced for C$4 million with a C$4 million greenshoe on Tuesday.
Accordingly, the company now will sell 12.9 million 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 now have a greenshoe for C$3.01 million, or 4.3 million units.
Settlement is expected on 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$9.03 million
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Greenshoe: | C$3.01 million, or 4.3 million units
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Units: | 12.9 million
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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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Upsized: | June 17
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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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