By Devika Patel
Knoxville, Tenn., Oct. 24 - Avalon Ventures Ltd. announced it has entered into an agreement with Research Capital Corp. for a C$15 million private placement of units and shares.
The company will sell about C$10 million in units of one common share and one half-share warrant at C$1.55 apiece. Each whole warrant will be exercisable for one common share at C$2.00 for 18 months.
Avalon also will sell about C$5 million in flow-through shares at C$1.85 per share.
The securities have a four-month hold period.
Research Capital also has a greenshoe for C$2.23 million in units and will receive a 7% cash commission and a compensation option to acquire a number of units equal to 7% of the securities sold.
Proceeds will be used for exploration and development, for working capital and other general corporate purposes.
Avalon Ventures is a Toronto-based junior mineral exploration and development company, with a primary focus on rare metals and minerals with high technology applications or offering environmental benefits.
| Issuer: | Avalon Ventures Ltd.
|
| Issue: | Units of one common share and one half-share warrant, flow-through shares
|
| Total amount: | C$15 million
|
| Greenshoe: | C$2,225,000 in units
|
| Agent: | Research Capital Corp.
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| Fees: | 7% in cash, 7% in units
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| Pricing date: | Oct. 24
|
| Stock symbol: | TSX Venture: AVL
|
| Stock price: | C$1.65 at close Oct. 23
|
|
|
| Units
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| Amount: | C$10 million
|
| Price: | C$1.55
|
| Warrants: | One half warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$2.00
|
|
|
| Flow-through shares
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| Amount: | C$5 million
|
| Price: | C$1.85
|
| Warrants: | No
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