By Devika Patel
Knoxville, Tenn., Nov. 9 - Verena Minerals Corp. said it is amending its agreement for a private placement of stock, which closed on March 7, saying it was only able to raise C$2.2 million of the deal's planned C$4.4 million. The placement priced on Feb. 27.
The company canceled 4 million of the 8 million common shares it planned to sell to Razin Overseas Ltd. at C$0.55 per share because Razin was unable to pay the total amount owed, due to financial difficulties.
On closing, Verena received C$2.2 million for the shares and issued the 4 million common shares. Razin was to have paid another C$1.1 million to Verena by June 9 and the final balance of another C$1.1 million by Sept. 9, and Verena would have issued the remaining 4 million shares of the deal.
Razin failed to pay and, on July 18, was given an extension until Oct. 15 to complete the deal.
Verena said it has held extensive meetings with Razin trying to get paid for the shares but has been unsuccessful. As a result, Verena has decided to cancel the remaining 4 million shares of the agreement.
Verena said it has sufficient funds to complete its drill program at Volta Grande.
Toronto-based Verena is a mineral exploration company focused on gold, diamond and gem projects.
| Issuer: | Verena Minerals Corp.
|
| Issue: | Common shares
|
| Amount: | C$2.2 million
|
| Price: | C$0.55
|
| Shares: | 4 million
|
| Warrants: | No
|
| Investor: | Razin Overseas Ltd.
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 7
|
| Revised: | Nov. 9
|
| Stock symbol: | TSX Venture: VML
|
| Stock price: | C$0.48 at close Feb. 27
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
