Deal finances summer 2016 work program on the Jersey-Emerald Property
By Devika Patel
Knoxville, Tenn., July 5 – Margaux Resources Ltd. said it raised C$1.18 million in the first tranche of a non-brokered private placement of units and stock. The deal priced on May 25 and was increased twice, to C$830,000 from C$125,000 on May 31 and to C$1,381,000 on June 23.
The company is selling C$601,000 of units of one common share and a warrant at C$0.20 per unit. Each warrant is exercisable at C$0.30 for two years.
Margaux also is selling C$550,000 of CEE flow-through common shares at C$0.25 apiece and 1,045,455 CDE flow-through common shares at C$0.22 per share for C$230,000.
The prices per share are identical and a 12% discount to the May 24 closing share price of C$0.25. The warrant strike price is a 20% premium to that price.
In the initial tranche, the company sold 2,005,000 units, 2.32 million CEE flow-through common shares issued and 909,091 CDE flow-through common shares.
Proceeds will be used for the summer 2016 work program on the Jersey-Emerald Property.
The oil explorer is based in Calgary, Alta.
| Issuer: | Margaux Resources Ltd.
|
| Issue: | Units of one common share and a warrant, CEE flow-through common shares, CDE flow-through common shares
|
| Amount: | C$1,381,000
|
| Agent: | Non-brokered
|
| Pricing date: | May 25
|
| Upsized: | May 31, June 23
|
| Settlement date: | July 5 (for C$1,181,000)
|
| Stock symbol: | TSX Venture: MRL
|
| Stock price: | C$0.25 at close May 24
|
| Market capitalization: | C$5.39 million
|
|
|
| Units
|
| Amount: | C$601,000
|
| Price: | C$0.20
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
|
|
| CEE shares
|
| Amount: | C$550,000
|
| Price: | C$0.25
|
| Warrants: | No
|
|
|
| CDE shares
|
| Amount: | C$230,000
|
| Shares: | 1,045,455
|
| Price: | C$0.22
|
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