Non-brokered deal finances exploration program at the Penoles Project
By Devika Patel
Knoxville, Tenn., July 31 – Morro Bay Resources Ltd. said it raised C$100,000 in the first tranche of a C$2 million non-brokered private placement of units. The deal priced for between C$50,000 and C$2 million on Wednesday.
The company is selling up to 40 million units of one common share and one warrant at C$0.05 per unit. Each two-year warrant will be exercisable at C$0.05 in the first year and at C$0.10 in the second year. The strike prices are 66.67% and 233.33% premiums to the July 28 closing share price of C$0.03.
In the first tranche, Morro Bay sold 2 million units. Chief executive officer and director John Zang invested C$60,000 in the first tranche, and chief operating officer Andrew Daniels invested C$20,000.
Proceeds will be used for the company’s 2015 exploration program at the Penoles Project and general corporate purposes.
The precious metals explorer is based in Calgary, Alta.
| Issuer: | Morro Bay Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$2 million (maximum)
|
| Units: | 40 million (maximum)
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike prices: | C$0.05 in the first year, C$0.10 in the second year
|
| Agent: | Non-brokered
|
| Investors: | John Zang (for C$60,000) and Andrew Daniels (for C$20,000)
|
| Pricing date: | July 29
|
| Settlement date: | July 31 (for C$100,000)
|
| Stock symbol: | TSX Venture: MRB
|
| Stock price: | C$0.03 at close July 28
|
| Market capitalization: | C$1.59 million
|
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