By Devika Patel
Knoxville, Tenn., Dec. 10 - Trade Winds Ventures Inc. said it has taken in C$2 million in the first closing of a C$3.5 million brokered private placement of units. The deal priced on Dec. 7, along with a C$2.75 million non-brokered placement of units and flow-through units.
In this closing, the company sold 8 million units at C$0.25 each to RBC Dominion Securities Inc., as part of the brokered deal.
The company plans to sell up to 14 million units at that price in the brokered deal. The units are comprised of one common share and one half-share warrant. The whole warrants are exercisable at C$0.30 for two years.
Octagon Capital Corp. will be the lead agent and receive an 8% commission, payable in cash or units, at Octagon's option. In addition, the agents will receive a number of compensation warrants equal to 8% of the number of units sold, exercisable for two years at C$0.25.
In the non-brokered deal, the company plans to sell up to 3,333,334 flow-through units at C$0.30 each for C$1 million. These units are comprised of one flow-through common share and one half-share warrant. The whole warrants are exercisable at C$0.50 for one year.
Trade Winds also will sell 7 million non flow-through units in the non-brokered deal for C$1.75 million. These units have the same terms as those sold in the brokered deal.
Proceeds will be used for exploration, development, property acquisitions, investments and working capital.
Trade Winds, based in Timmins, Ont., is a gold exploration company.
Brokered deal
| Issuer: | Trade Winds Ventures Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$3.5 million (maximum)
|
| Units: | 14 million (maximum)
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Octagon Capital Corp. (lead)
|
| Investor: | RBC Dominion Securities Inc. (for 8 million units)
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 10 (for C$2 million)
|
| Stock symbol: | OTCBB: TWDIF
|
| Stock price: | C$0.234 at close Dec. 7
|
|
|
| Non-brokered deal
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| Issuer: | Trade Winds Ventures Inc.
|
| Issue: | Units of one share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$2.75 (maximum)
|
| Agent: | Non-brokered
|
| Pricing date: | Dec. 7
|
| Stock symbol: | OTCBB: TWDIF
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| Stock price: | C$0.234 at close Dec. 7
|
|
|
| Units
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| Amount: | C$1.75 million
|
| Units: | 7 million (maximum)
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| Price: | C$0.25
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| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
|
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| Flow-through units
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| Amount: | C$1 million
|
| Units: | 3,333,334 (maximum)
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| Price: | C$0.30
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.50
|
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