Deal with C$1 million greenshoe finances exploration, working capital
By Devika Patel
Knoxville, Tenn., April 11 - Central Iron Ore Ltd. announced it plans a C$3 million private placement of units via agent PowerOne Capital Markets Ltd. The offering has a C$1 million greenshoe.
The company will sell 15 million units at C$0.20 apiece on a best-efforts basis. The units consist of one common share and one half-share warrant. Each whole warrant will be exercisable at C$0.30 for two years. The strike price reflects a 53.85% premium to the April 8 closing share price of C$0.195.
Settlement is expected April 26.
Proceeds will be used for exploration and working capital.
Vancouver, B.C.-based Central Iron Ore explores for gold and iron.
| Issuer: | Central Iron Ore Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$3 million
|
| Greenshoe: | C$1 million
|
| Units: | 15 million
|
| Price: | C$0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | PowerOne Capital Markets Ltd.
|
| Pricing date: | April 11
|
| Settlement date: | April 26
|
| Stock symbol: | TSX Venture: CIO
|
| Stock price: | C$0.195 at close April 8
|
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