Deal's proceeds earmarked for exploration and general working capital
By Devika Patel
Knoxville, Tenn., Nov. 18 - Tasman Metals Ltd. said it settled the first tranche of a non-brokered private placement of units. The deal raised C$5 million.
The company sold 3,333,334 units at C$1.50 apiece. Each unit consists of one common share and one half-share warrant, with each whole two-year warrant exercisable at C$1.85 until Nov. 17, 2012.
The strike price reflects a 5.13% premium to the Nov. 17 closing share price of C$1.95.
Mark Saxon, president of Tasman, said that "we're still talking to some strategic partners" in regard to raising more funds, though there was no guarantee an agreement would be reached.
Investors participating in this tranche, however, responded "very well," he said. "We filled it quite easily. The first C$4 million was easy; the last C$1 million took a little longer."
Saxon noted that many existing investors participated in the financing, and the deal also generated support from Europe, Canada and the United States.
The interest in the financing was due in part to the attractiveness of the sector, he said. "People were coming to us with proposals for financings."
Proceeds will be used for exploration activities, including metallurgical work and a winter drilling program at Tasman's various properties.
"We're spending cash at a faster rate than before," Saxon explained, citing the metallurgy currently being done. "So it's always good to secur e the company with extra funds."
Tasman is a junior resource company based in Vancouver, B.C.
Stephanie N. Rotondo contributed to this article
| Issuer: | Tasman Metals Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5 million
|
| Units: | 3,333,334
|
| Price: | C$1.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Nov. 17, 2012
|
| Warrant strike price: | C$1.85
|
| Agent: | Non-brokered
|
| Settlement date: | Nov. 18
|
| Stock symbol: | TSX Venture: TSM
|
| Stock price: | C$1.95 at close Nov. 17
|
| Market capitalization: | C$100.58 million
|
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