Proceeds to finance exploration and development of Tanzanian projects
By Devika Patel
Knoxville, Tenn., Oct. 25 - Tembo Gold Corp. said it raised C$2.95 million in the first tranche of a C$4 million private placement of units. The deal has a C$2 million greenshoe.
The company is selling 8 million units of a common share and a half-share warrant at C$0.50 per unit. It sold 5,896,000 units in the first tranche.
Each whole warrant will be exercisable at C$0.80 for 18 months. The strike price reflects a 40.35% premium to the Oct. 1 closing share price of C$0.57.
The deal is being conducted on a commercially reasonable-efforts basis by a syndicate of agents led by Canaccord Genuity Corp.
Settlement of a second tranche is expected on Oct. 30.
Proceeds will be used for exploration and development of the company's projects in Tanzania and for general working capital purposes.
The gold explorer is based in Toronto.
| Issuer: | Tembo Gold Corp.
|
| Issue: | Units of a common share and a half-share warrant
|
| Amount: | C$4 million
|
| Greenshoe: | C$2 million
|
| Units: | 8 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.80
|
| Agents: | Canaccord Genuity Corp. (lead)
|
| Pricing date: | Oct. 2
|
| Settlement date: | Oct. 25 (for C$2,948,000), Oct. 30
|
| Stock symbol: | TSX Venture: TEM
|
| Stock price: | C$0.57 at close Oct. 1
|
| Market capitalization: | C$19.79 million
|
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