Company sells common shares and two-year warrants at C$0.30 per unit
By Devika Patel
Knoxville, Tenn., July 8 – TriStar Gold Inc. said on Thursday that it raised C$3.97 million in the first tranche of a C$6 million private placement of units.
Beacon Securities Ltd. is the lead agent and bookrunner for the deal, which priced with a C$900,000 greenshoe on June 13. Some of the proceeds will be raised on a non-brokered basis.
The company is selling 20 million units of one common share and one half-share warrant at C$0.30 per unit on a best-efforts basis. Each whole warrant will be exercisable at C$0.55 for two years. The strike price is a 52.78% premium to C$0.36, the June 10 closing share price.
TriStar sold 13,237,839 units in the initial tranche.
Proceeds will be used to conduct an infill drill program at the company’s Castelo de Sonhos project in Brazil.
The gold exploration company is based in Houston.
| Issuer: | TriStar Gold Inc.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$6 million
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| Greenshoe: | C$900,000, or 3 million units
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| Units: | 20 million
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| Price: | C$0.30
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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$0.55
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| Agent: | Beacon Securities Ltd. (lead), Paradigm Capital Inc., non-brokered
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| Pricing date: | June 13
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| Settlement date: | July 7 (for C$3,971,352)
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| Stock symbol: | TSX Venture: TSG
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| Stock price: | C$0.36 at close June 10
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| Market capitalization: | C$37.76 million
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