Company also to acquire Black Sea Copper for 23,190,002 common shares
By Devika Patel
Knoxville, Tenn., Aug. 31 – Alternative Earth Resources Inc. said that it will conduct a C$1.5 million non-brokered private placement of units with a C$450,000 greenshoe.
The company will sell 7.5 million units of one common share and one warrant at C$0.20 per unit.
Each whole warrant is exercisable at C$0.35 for two years. The strike price is a 400% premium to the Aug. 30 closing share price of C$0.07.
The company also said that it has negotiated a definitive and binding share exchange agreement on Aug. 31 to acquire Black Sea Copper & Gold Corp. in exchange 23,190,002 common shares. Black Sea Copper owns an option to acquire the Alankoy copper-gold project in Turkey.
The company also plans a consolidation of its common stock in which it will consolidate its share capital on the basis of 1.24 existing shares for each new share so that its 13,066,059 of outstanding shares before the acquisition will be consolidated into 10,537,144 outstanding shares on a post-consolidation basis. The placement is being conducted on a post-consolidation basis.
The Vancouver, B.C., company is reviewing several mineral exploration and development projects for potential acquisitions.
| Issuer: | Alternative Earth Resources Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1.5 million
|
| Greenshoe: | C$450,000, or 2.25 million units
|
| Units: | 7.5 million
|
| Price: | C$0.20
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.35
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 31
|
| Stock symbol: | TSX Venture: AER
|
| Stock price: | C$0.07 at close Aug. 30
|
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