By Sheri Kasprzak
Atlanta, April 26 - TelcoPlus Enterprises Inc. said it will raise C$4 million in a private placement to help fund its acquisition of Yacimientos Mineros Riojanos SA.
The offering includes 16 million units at C$0.25 each.
The units are comprised of one share and one half-share warrant. The full warrants allow for an additional share at C$0.35 each for two years.
The exercise price of the warrants will be increased to the lower of the market price or C$0.49 if the company's stock trades higher than C$0.35 per share.
Under the terms of the acquisition, Telco will acquire 79.6% of Yacimientos Mineros from arm's-length shareholders in a reverse takeover. Telco plans to issue 59.7 million in the takeover. The remaining 20.4% of Yacimientos is held by the government of the province of La Rioja, Argentina. The company is currently in talks to acquire the remainder for up to 15.3 million shares.
Once the reverse takeover is complete, TelcoPlus plans to change its name to Yamiri Gold & Energy Inc.
Based in Vancouver, B.C., TelcoPlus is a mineral exploration company. The funds not used for the acquisition will be used for exploration and development as well as working capital.
| Issuer: | TelcoPlus Enterprises Inc.
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| Issue: | Units of one share and one half-share warrant
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| Amount: | C$4 million
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| Units: | 16 million
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| Price: | C$0.25
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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$0.35
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| Pricing date: | April 25
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| Stock price: | C$0.325 at close March 31 (last trade)
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