Brokered financing with C$6.01 million greenshoe to fund exploration
By Devika Patel
Knoxville, Tenn., Sept. 28 - Sandspring Resources Ltd. said it increased its private placement to 17,323,077 common shares from 15.4 million common shares. The deal priced for C$40.04 million with a C$6.01 million greenshoe on Sept. 27.
The company now plans to take in C$45.04 million by selling the shares at C$2.60 apiece, a 7.14% discount to the Sept. 24 closing share price of C$2.80.
The deal is being conducted on a bought-deal basis by a syndicate, with Jennings Capital Inc., GMP Securities LP and Mackie Research Capital Corp. as co-lead underwriters.
Settlement is expected on Oct. 14.
Proceeds will be used for the exploration and development of the company's Toroparu deposit and general corporate purposes.
Sandspring is a Calgary, Alta.-based exploration-stage gold company.
| Issuer: | Sandspring Resources Ltd.
|
| Issue: | Common shares
|
| Amount: | C$45.04 million
|
| Greenshoe: | C$6,006,000
|
| Units: | 17,323,077
|
| Price: | C$2.60
|
| Warrants: | No
|
| Agent: | Jennings Capital Inc., GMP Securities LP and Mackie Research Capital Corp. (co-leads)
|
| Pricing date: | Sept. 27
|
| Upsized: | Sept. 28
|
| Settlement date: | Oct. 14
|
| Stock symbol: | TSX Venture: SSP
|
| Stock price: | C$2.80 at close Sept. 24
|
| Market capitalization: | C$213.55 million
|
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