Deal planned in conjunction with agreement to acquire gold prospects
By Devika Patel
Knoxville, Tenn., Sept. 16 - Wolverine Minerals Corp. said it plans a C$2 million private placement of units.
The company will sell 5 million flow-through shares at C$0.20 apiece. The price represents a 13.04% discount to C$0.23, the Sept. 15 closing share price.
The company also will sell 5 million units at C$0.20 apiece. Each unit consists of one share and one half-share warrant. Each whole warrant is exercisable at C$0.35 for 18 months.
The strike price represents a 52.17% premium to the Sept. 15 closing share price.
The company also said it has entered into a binding letter agreement with Strategic Metals Ltd. under which Strategic has agreed to allow Wolverine to earn a 100% interest in 21 of Strategic's Yukon gold prospects. The prospects cover more than 325 square kilometers and are prospective for orogenic style gold mineralization.
Under the agreement, Wolverine can earn its interest by initially paying Strategic C$100,000 and the equivalent of 19.9% of its outstanding share capital in common shares. This C$2 million financing is being conducted in connection with the Strategic arrangement.
Wolverine will subsequently be required to pay Strategic an additional C$2.9 million over three years. After Wolverine earns its interest, Strategic will retain a 2% royalty in any precious metals production from the properties and a 1% royalty in any other metal or mineral production.
During the earn-in period, Strategic may participate in Wolverine financings so as to maintain its equity interest.
Goldeye is a Toronto-based mineral exploration company.
| Issuer: | Wolverine Minerals Corp.
|
| Issue: | Flow-through shares, units of one common share and one half-share warrant
|
| Amount: | C$2 million
|
| Price: | C$0.20
|
| Pricing date: | Sept. 16
|
| Stock symbol: | TSX Venture: WLV
|
| Stock price: | C$0.39 at close Sept. 16
|
| Market capitalization: | C$6.47 million
|
|
|
| Flow-through shares
|
| Amount: | C$1 million
|
| Shares: | 5 million
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$1 million
|
| Units: | 5 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant strike price: | C$0.35
|
| Warrant expiration: | 18 months
|
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