By Devika Patel
Knoxville, Tenn., Dec. 7 - Yukon Zinc Corp. announced that it plans to raise C$8 million in a private placement of units and stock.
The company will sell up to C$2 million in flow-through shares at C$0.14 per share and up to C$6 million in units at C$0.12 apiece. Each unit will consist of one common share and one half-share warrant, with each whole warrant exercisable at C$0.16 for two years.
The deal is being conducted by a syndicate of agents led by Haywood Securities Inc., co-led by Paradigm Capital Inc. and including Blackmont Capital Inc. The agents have a greenshoe for C$2 million.
The company will pay the agents a 6% cash commission and issue compensation options equal to 6% of the units sold, exercisable at C$0.12 for one year.
Proceeds will be used for development, engineering and working capital. The deal will settle on Dec. 20.
Based in Vancouver, B.C., Yukon Zinc is a base-precious metals exploration company.
| Issuer: | Yukon Zinc Corp.
|
| Issue: | Units of one common share and one half-share warrant; flow-through shares
|
| Amount: | C$8 million
|
| Greenshoe: | C$2 million
|
| Agents: | Haywood Securities Inc. (lead), Paradigm Capital Inc. (co-lead), Blackmont Capital Inc.
|
| Fees: | 6% in cash and options
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 20
|
| Stock symbol: | TSX Venture: YZC
|
| Stock price: | C$0.12 at close Dec. 7
|
|
|
| Units
|
| Amount: | C$6 million
|
| Price: | C$0.12
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$0.16
|
|
|
| Flow-through shares
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| Amount: | C$2 million
|
| Price: | C$0.14
|
| Warrants: | No
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