By Laura Lutz
Des Moines, April 27 - YGC Resources Ltd. negotiated a private placement of subscription receipts for up to C$86.4 million.
The company plans to sell up to 48 million subscription receipts at C$1.80 apiece.
The syndicate of agents has an over-allotment option for up to 7.2 million additional subscription receipts.
Each subscription receipt will be exchangeable for one common share and one half-share warrant upon satisfaction of release conditions including approval of a planned merger with Queenstake Resources Ltd.
If the release conditions are not satisfied by 4 p.m. ET on June 29, the proceeds will be refunded to subscribers.
Each whole warrant will be exercisable at C$3.00 for five years.
Proceeds will be used for mine development, plant and equipment upgrades, a feasibility study and working capital.
YGC is a resource exploration company based in Toronto.
| Issuer: | YGC Resources Ltd.
|
| Issue: | Subscription receipts exchangeable for one share and one half-share warrant
|
| Amount: | C$86.4 million
|
| Subscription receipts: | 48 million
|
| Greenshoe: | 7.2 million subscription receipts
|
| Price: | C$1.80
|
| Warrants: | One half-share warrant upon exchange
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$3.00
|
| Pricing date: | April 27
|
| Stock symbol: | Toronto: YGC
|
| Stock price: | C$1.89 at close April 27
|
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