By Sheri Kasprzak
New York, March 17 - Augusta Resource Corp. said it has settled a C$44,099,000 private placement.
The company issued 23.21 million special warrants at C$1.90 each, including the fully exercised over-allotment option for 2.11 million special warrants exercised by a syndicate of agents led by Salman Partners Inc. and BMO Nesbitt Buns Inc. The syndicate also includes TD Securities Inc. and Wellington West Capital Markets Inc.
The special warrants are exchangeable on a one-for-one basis for units of one share and one half-share warrant once a prospectus covering the underlying shares is declared effective.
The whole warrants are exercisable at C$3.10 each for the first year and at C$4.10 each for the second year.
The deal priced Feb. 10 as a C$35,055,000 offering and was upsized to C$40.90 million on March 6.
Proceeds will be used for the acquisition of the Rosemont property in Arizona. The rest will be used for working capital.
Augusta, based in Vancouver, B.C., is a mineral exploration company.
| Issuer: | Augusta Resource Corp.
|
| Issue: | Special warrants exchangeable for units of one share and one half-share warrant
|
| Amount: | C$44,099,000
|
| Special warrants: | 23.21 million (includes greenshoe for 2.11 million special warrants)
|
| Price: | C$1.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$3.10 for the first year, C$4.10 for the second year
|
| Placement agents: | Salman Partners Inc. (lead), BMO Nesbitt Burns Inc. (lead), TD Securities Inc. and Wellington West Capital Markets Inc.
|
| Pricing date: | Feb. 10
|
| Upsized: | March 6
|
| Settlement date: | March 17
|
| Stock symbol: | TSX Venture: ARS
|
| Stock price: | C$2.04 at close Feb. 10
|
| Stock price: | C$1.95 at close March 6
|
| Stock price: | C$2.07 at close March 17
|
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