Sale funds exploration and development of the Timok Magmatic Complex
By Devika Patel
Knoxville, Tenn., Dec. 18 - Avala Resources Ltd. said it negotiated a C$10 million private placement of units. The deal has a 15% greenshoe.
The company will sell 50 million units of one common share and one warrant at C$0.20 per unit.
Each warrant will be exercisable at C$0.30 for two years. The strike price reflects a 50% premium to the Dec. 17 closing share price of C$0.20.
The deal will be conducted on a best-efforts basis by a syndicate of agents led by Dundee Securities Ltd. and including co-lead agent Stifel Nicolaus Canada Inc. and Primary Capital Inc.
Settlement is expected Jan. 10.
Proceeds will be used for exploration and development of the Timok Magmatic Complex and general corporate purposes.
Avala is a gold and copper exploration company in Longueuil, Quebec.
| Issuer: | Avala Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$10 million
|
| Greenshoe: | 15%
|
| Units: | 50 million
|
| Price: | C$0.20
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agents: | Dundee Securities Ltd. (lead), Stifel Nicolaus Canada Inc. (co-lead), Primary Capital Inc.
|
| Pricing date: | Dec. 18
|
| Settlement date: | Jan. 10
|
| Stock symbol: | TSX Venture: AVZ
|
| Stock price: | C$0.20 at close Dec. 17
|
| Market capitalization: | C$42.9 million
|
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