Proceeds of brokered deal slated for general working capital purposes
By Devika Patel
Knoxville, Tenn., Nov. 22 - Tanzania Minerals Corp. said it will sell 16,364,000 units in a private placement.
The company will sell the units at C$0.55 apiece for C$9 million. Each unit consists of one common share and one half-share warrant, with each whole two-year warrant exercisable at C$0.75. The strike price reflects a 22.95% premium to the Nov. 19 closing share price, C$0.61.
The deal will be conducted by a syndicate of agents led by Primary Capital Inc.
Proceeds will be used for general working capital purposes.
"We are very pleased with this financing, and it will allow us to aggressively move forward into the next phase of our business model," chief executive Kal Matharu said in a press release.
The junior gold mining company is based in Vancouver, B.C.
Issuer: | Tanzania Minerals Corp.
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Issue: | Units of one common share and one half-share warrant
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Amount: | C$9,000,200
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Units: | 16,364,000
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Price: | C$0.55
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Warrants: | One half-share warrant per unit
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Warrant expiration: | Two years
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Warrant strike price: | C$0.75
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Agents: | Primary Capital Inc. (lead)
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Pricing date: | Nov. 22
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Stock symbol: | TSX Venture: TZM
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Stock price: | C$0.61 at close Nov. 19
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Market capitalization: | C$34.53 million
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