Receipts swap for units of one common share and one three-year warrant
By Devika Patel
Knoxville, Tenn., Feb. 3 – Oban Mining Corp. said it completed a C$12.63 million private placement of subscription receipts. The deal priced for C$10 million with a C$10 million greenshoe on Jan. 11.
The company sold 10,521,700 receipts at C$1.20 apiece. Of the receipts, 2,188,367 were part of the partially exercised greenshoe.
Each receipt is exchangeable for one unit of one common share and one warrant. The warrants will each be exercisable at C$1.44 for three years.
The strike price reflects a 20% premium to the Jan. 8 closing share price of C$1.20.
The deal was conducted on a best-efforts basis by a syndicate of agents led by Dundee Securities Ltd.
Proceeds will be used for working capital and general corporate purposes.
The Toronto company explores for base and precious metals.
| Issuer: | Oban Mining Corp.
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| Issue: | Subscription receipts convertible into units of a common share and one warrant
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| Amount: | C$12,626,040, including C$2,626,040 greenshoe of 2,188,367 receipts
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| Receipts: | 10,521,700
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| Price: | C$1.20
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| Warrants: | One warrant per unit upon conversion
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| Warrant expiration: | Three years
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| Warrant strike price: | C$1.44
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| Agents: | Dundee Securities Ltd. (lead), Beacon Securities Ltd., Medalist Capital Ltd., Cormark Securities Inc., Haywood Securities Inc. and M Partners Inc.
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| Pricing date: | Jan. 11
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| Settlement date: | Feb. 3
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| Stock symbol: | Toronto: OBM
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| Stock price: | C$1.20 at close Jan. 8
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| Market capitalization: | C$61.04 million
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