By Devika Patel
Knoxville, Tenn., Nov. 27 - Ascot Resources Ltd. announced that it plans to raise up to C$23.13 million in a private placement of units and stock.
The company will sell up to 1.5 million flow-through shares at C$2.00 per share for C$3 million and up to 11.5 million units at C$1.75 apiece for C$20,125,000. Each unit will consist of one common share and one half-share warrant, with each whole warrant exercisable at C$2.25 for two years.
The warrants may expire sooner if the daily volume weighted average price of the company's common shares is higher than C$3.00 for 20 consecutive trading days. In that case, the warrants will expire on the 30th day after Ascot notifies holders.
The deal is being conducted by a syndicate of agents led by Dundee Securities Corp. and including PI Financial Corp. The agents have a C$3 million greenshoe for 1.72 million units.
The company will pay the agents a 7% cash commission and issue a number of broker's warrants equal to 7% of the securities sold in the deal. Each broker's warrant will be exercisable for one common share at C$2.25 for two years.
Proceeds will be used to develop the company's Swamp Point sand and gravel deposit, to explore the company's Dilworth project and for working capital.
Ascot is a junior mineral exploration company based in Vancouver, B.C.
| Issuer: | Ascot Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant; flow-through shares
|
| Total amount: | C$23,125,000
|
| Greenshoe: | C$3 million
|
| Agents: | Dundee Securities Corp. (lead), PI Financial Corp.
|
| Fees: | 7% in cash or securities, 7% in warrants
|
| Pricing date: | Nov. 27
|
| Stock symbol: | TSX Venture: AOT
|
| Stock price: | C$1.84 at close Nov. 26
|
|
|
| Units
|
| Amount: | C$20,125,000
|
| Units: | 11.5 million
|
| Price: | C$1.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.25
|
|
|
| Flow-through shares
|
| Amount: | C$3 million
|
| Shares: | 1.5 million
|
| Price: | C$2.00
|
| Warrants: | No
|
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