Non-brokered offering will finance building of Harper Creek Project
By Devika Patel
Knoxville, Tenn., Dec. 27 - Yellowhead Mining Inc. said it raised C$1.19 million in the second tranche of a non-brokered private placement of stock. The deal priced for C$8.45 million on Oct. 31 and raised C$5 million on Nov. 8.
The company is selling 13 million common shares at C$0.65 apiece. The price per share is a 14.04% premium to C$0.57, the Oct. 30 closing share price. Yellowhead sold 7,692,307 shares in the first tranche and 1,825,689 shares in the second.
"The management team of professional engineers, finance and permitting experts continues with their commitment to the task of building the Harper Creek Project," chairman of the board and interim chief executive officer T. Greg Hawkins said in a press release at pricing. "Following the closing of C$5 million of the offering, we will have C$10.5 million in working capital, including C$8.2 million in cash, and we will be comfortably positioned to complete the newly defined critical path activities with BC Hydro and the permitting offices.
"Paul Sweeney, strategic corporate advisor to the company, and I have been working closely with chief financial officer Saurabh Handa and the rest of the team to detail a medium- and long-term financing plan to get us through to start of construction and eventual production," Hawkins added. "With that in hand we can address the concerns of potential strategic partners and shareholders of Yellowhead."
The copper, gold and silver explorer is based in Vancouver, B.C.
| Issuer: | Yellowhead Mining Inc.
|
| Issue: | Common shares
|
| Amount: | C$8.45 million
|
| Shares: | 13 million
|
| Price: | C$0.65
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 31
|
| Settlement dates: | Nov. 8 (for C$5 million), Dec. 27 (for C$1,186,698)
|
| Stock symbol: | TSX Venture: YMI
|
| Stock price: | C$0.57 at close Oct. 30
|
| Market capitalization: | C$32.5 million
|
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