Deal has C$780,000 greenshoe, funds equipment acquisition and drilling
By Devika Patel
Knoxville, Tenn., April 29 - Aurcana Corp. said it plans a C$5.2 million private placement of units. The deal has a C$780,000 greenshoe and is being conducted by underwriter Dundee Securities Ltd.
The company will sell 8 million units of one common share and one warrant at C$0.65 per unit.
Each warrant is exercisable at C$0.90 for two years. The strike price reflects a 25% premium to the April 28 closing share price of C$0.72.
Proceeds will be used to acquire mining equipment at the La Negra mine, for exploration drilling at the La Negra property and general working capital purposes.
The company also said it has amended the terms of its C$50 million unsecured loan with MF2 Investment Holding Co. (Cayman) Ltd. The new agreement reduces the amount owed to C$40 million and the company will issue 16,499,501 common shares to Orion Mine Finance (Master) Fund I LP, the new holder of the loan, at a deemed issue price of $0.62 or C$0.69 per share.
Aurcana is a Vancouver, B.C., silver and base metals producer.
| Issuer: | Aurcana Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$5.2 million
|
| Greenshoe: | C$780,000
|
| Units: | 8 million
|
| Price: | C$0.65
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.90
|
| Underwriter: | Dundee Securities Ltd.
|
| Pricing date: | April 29
|
| Stock symbol: | TSX Venture: AUN
|
| Stock price: | C$0.72 at close April 28
|
| Market capitalization: | C$44.39 million
|
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