Deal has C$5 million greenshoe; proceeds fund potential acquisitions
By Devika Patel
Knoxville, Tenn., Sept. 8 - Blue Gold Mining Inc. said it will conduct a C$20 million private placement of units. The deal has a C$5 million greenshoe.
The company will sell 20 million units of one common share and one half-share warrant at C$1.00 per unit.
Each whole warrant is exercisable at C$1.50 for two years. The strike price reflects a 20% premium to the Sept. 7 closing share price of C$1.25.
The deal will be conducted on a best-efforts basis by a syndicate of agents led by Cormark Securities Inc. and including Axemen Resource Capital Ltd., PI Financial Corp. and Canaccord Genuity Inc.
Settlement is expected Oct. 6.
Proceeds will be used for potential acquisitions and general corporate purposes.
Blue Gold is a Vancouver, B.C., molybdenum explorer.
| Issuer: | Blue Gold Mining Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$20 million
|
| Greenshoe: | C$5 million
|
| Units: | 20 million
|
| Price: | C$1.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.50
|
| Agents: | Cormark Securities Inc. (lead), Axemen Resource Capital Ltd., PI Financial Corp. and Canaccord Genuity Inc.
|
| Pricing date: | Sept. 8
|
| Settlement date: | Oct. 6
|
| Stock symbol: | TSX Venture: BGX
|
| Stock price: | C$1.25 at close Sept. 7
|
| Market capitalization: | C$41.28 million
|
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