Company sells two types of unit to finance exploration and development
By Devika Patel
Knoxville, Tenn., May 4 - Yellowjacket Resources Ltd. said it raised C$1.2 million in a non-brokered private placement of units. The deal priced for C$2.5 million April 12 and was revised to raise C$1.95 million on April 18.
The company sold 535,534 flow-through units of one flow-through common share and one half-share warrant at C$0.18 per unit and 7,366,334 non flow-through units of one common share and one warrant at C$0.15 per unit.
The 30-month warrants are exercisable at C$0.30, an 87.5% premium to the April 11 closing share price of C$0.16.
The company originally had planned to sell 5 million flow-through units at C$0.18 per unit and 10 million non flow-through units at C$0.16 per unit, with the two-year warrants exercisable at C$0.32.
Insiders participated in the deal, including director Ryan Kalt, who invested $1 million; president and chief executive officer Chuck Downie, who invested $14.4 million; chief financial officer and director Glen Diduck, who invested $26.28 million; director Tim Termuende, who invested $5.4 million and director Darren Fach, who invested $13.7 million.
Proceeds will be used for exploration and development of the Yellowjacket Property and general working capital.
"This financing allows Yellowjacket to move forward with its summer hardrock exploration program," Downie said in a press release. "We are energized to see strong insider participation, including Mr. Kalt who becomes Yellowjacket's largest individual shareholder, and we are pleased with the confidence displayed by shareholders in accepting warrants at a 100% price premium to the common share component."
The gold exploration company is based in Cranbrook, B.C.
| Issuer: | Yellowjacket Resources Ltd.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, non flow-through units of one common share and one warrant
|
| Amount: | C$1,201,346
|
| Warrant expiration: | 30 months
|
| Warrant strike price: | C$0.30
|
| Agent: | Non-brokered
|
| Investors: | Ryan Kalt (for $1 million), Chuck Downie (for $14.4 million), Glen Diduck (for $26.28 million), Tim Termuende (for $5.4 million) and Darren Fach (for $13.7 million)
|
| Pricing date: | April 12
|
| Amended: | April 18
|
| Settlement date: | May 4
|
| Stock symbol: | TSX Venture: YJK
|
| Stock price: | C$0.16 at close April 11
|
| Market capitalization: | C$4.9 million
|
|
|
|
|
| Flow-through units
|
| Amount: | C$96,396
|
| Units: | 535,534
|
| Price: | C$0.18
|
| Warrants: | One half-share warrant per unit
|
|
|
|
|
| Non flow-through units
|
| Amount: | C$1,104,950
|
| Units: | 7,366,334
|
| Price: | C$0.15
|
| Warrants: | One warrant per unit
|
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