Proceeds fund purchase of interest in Australian exploration licenses
By Devika Patel
Knoxville, Tenn., May 11 - Terra Nova Minerals Inc. said it settled a C$10.65 million private placement of units. The deal priced for C$10 million with a 10% greenshoe on March 26 and was conducted by Macquarie Private Wealth Inc.
The company sold units of one common share and one warrant at C$0.25 per unit. Each warrant will be exercisable at C$0.30 for two years.
The unit price is a 15.25% discount to the stock's closing price of C$0.295 on March 23. The warrant strike price is 1.69% premium to the closing price.
Proceeds will be used to fund the acquisition of an up to 55% working interest in two petroleum exploration licenses located on the western flank of the Cooper Basin in the state of South Australia. The agreement is with Houston-based Holloman Energy Corp.
"I am excited and very confident that the acquisition of 3D seismic on the farmout lands subject to this acquisition will lead to a multitude of drilling locations," Norman Mackenzie, chief executive officer of Terra Nova, said in a news release at pricing. "The fiscal regime in Australia is attractive and operational infrastructure, equipment and personnel are readily at hand."
Terra Nova is a Calgary, Alta.-based mining company.
| Issuer: | Terra Nova Minerals Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$10,652,075 (including C$652,075 greenshoe)
|
| Price: | C$0.25
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Macquarie Private Wealth Inc.
|
| Pricing date: | March 26
|
| Settlement date: | May 11
|
| Stock symbol: | TSX Venture: TGC
|
| Stock price: | C$0.295 at close March 23
|
| Market capitalization: | C$4.16 million
|
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