Non-brokered deal funds planned acquisition of the Hasbrouck project
By Devika Patel
Knoxville, Tenn., April 9 - West Kirkland Mining Inc. said it plans a non-brokered private placement of units to raise between C$5.1 million and C$8.51 million.
The company will sell between 34 million and 56.7 million units of one common share and one warrant at C$0.15 per unit. Each warrant will be exercisable at C$0.30 for five years. The strike price is a 76.47% premium to the April 8 closing share price of C$0.17.
A 6% cash finder's fee will be paid to affiliates of Sprott Inc.
The company also said it plans a public sale of units at the same price to raise between C$16.5 million and C$22.5 million, with a 15% greenshoe. For this sale, West Kirkland has hired a syndicate of agents co-led by Cormark Securities Inc. and PI Financial Corp. and including GMP Securities LP and Macquarie Capital Markets Canada Ltd.
Settlement is expected April 17.
Proceeds will be used for an acquisition payment to Allied Nevada Gold Corp. in connection with the company's planned acquisition of the Hasbrouck project and general corporate purposes.
The gold explorer is based in Vancouver, B.C.
| Issuer: | West Kirkland Mining Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$5.1 million (minimum), C$8,505,000 (maximum)
|
| Units: | 34 million (minimum), 56.7 million (maximum)
|
| Price: | C$0.16
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.30
|
| Agent: | Non-brokered
|
| Pricing date: | April 9
|
| Settlement date: | April 17
|
| Stock symbol: | TSX Venture: WKM
|
| Stock price: | C$0.17 at close April 8
|
| Market capitalization: | C$10.73 million
|
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