Deal conducted on best-efforts basis via Loewen, Ondaatje, McCutcheon
By Devika Patel
Knoxville, Tenn., Jan. 31 - URSA Major Minerals Inc. said it has completed a private placement of units and flow-through common shares that was conducted via agent Loewen, Ondaatje, McCutcheon Ltd. The deal priced for C$2.58 million on Jan. 26 and raised C$2.47 million on a best-efforts basis.
The company sold 5,399,000 units at C$0.18 apiece for C$971,820. It also sold 7.5 million flow-through shares at C$0.20 per share for C$1.5 million.
Each unit will consist of one common share and one half-share warrant, with each whole two-year warrant exercisable at C$0.24 in the first year and at C$0.30 in the second year.
The price of the flow-through shares is a 2.44% discount to the Jan. 25 closing share price of C$0.205. The strike prices of the warrants are 17.07% and 46.34% premiums to that price.
Proceeds will be used for exploration on the company's existing properties and general administrative expenses.
"The proceeds of this financing will provide the company with the capability to accelerate its current exploration program at the Shakespeare nickel-copper deposit, Nickel Offsets property and other Ontario properties," president and chief executive officer Richard Sutcliffe said in a press release at pricing. "The company will continue to drill down plunge from the Shakespeare East Deposit where we anticipate an opportunity to significantly expand the current nickel-copper resources at Shakespeare.
"Currently we are drill testing a strong borehole EM conductor down-plunge from known mineralization. In addition, we intend to conduct further drilling at Nickel Offsets, where we have outlined high grade nickel-copper-platinum group metal targets from the drilling program in late 2010. Through the use of airborne electromagnetic and magnetic surveys we have also identified targets for nickel, copper and platinum group metals potential on our Thunder Bay properties," Sutcliffe concluded.
Toronto-based URSA Major Minerals explores and develops nickel, copper and precious metal deposits.
| Issuer: | URSA Major Minerals Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$2,471,820
|
| Agent: | Loewen, Ondaatje, McCutcheon Ltd.
|
| Pricing date: | Jan. 26
|
| Settlement date: | Jan. 31
|
| Stock symbol: | Toronto: UMJ
|
| Stock price: | C$0.205 at close Jan. 25
|
| Market capitalization: | C$11.22 million
|
|
|
| Units
|
| Amount: | C$971,820
|
| Units: | 5,399,000
|
| Price: | C$0.18
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike prices: | C$0.24 in the first year, C$0.30 in the second year
|
|
|
| Shares
|
| Amount: | C$1.5 million
|
| Shares: | 7.5 million
|
| Price: | C$0.20
|
| Warrants: | No
|
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