By Devika Patel
Knoxville, Tenn., Oct. 2 - CGA Mining Ltd. announced on Sept. 28 it plans a $60 million private placement of shares and units. The deal's $5 million greenshoe was exercised in full on Oct. 2, bringing the total proceeds to $65 million.
The common shares will be issued at a price of C$0.83 per share.
Each unit will consist of one promissory note with a par value of $1,000 and 250 transferable warrants. The notes will have a 12% coupon payable semiannually and mature in five years. The notes are redeemable at any time after two years.
Each transferable warrant will be exercisable for three years at C$1.03. The warrants may expire sooner if the volume weighted average of CGA's share price is at least 160% of the exercise price for 20 consecutive trading days. In that case, the warrants will expire 30 days after CGA informs holders.
The deal is expected to close on Oct. 30.
Haywood Securities Inc. is the agent.
Proceeds will be used to fund the construction of the company's Masbate Gold Mine in the Philippines.
Based in Perth, Australia, CGA Mining, formerly Central Asia Gold Ltd., is engaged in mineral exploration and development.
| Issuer: | CGA Mining Ltd.
|
| Issue: | Common shares; units of one promissory note with a par value of $1,000 and 250 transferable share purchase warrants
|
| Amount: | $65 million, including $5 million greenshoe
|
| Agent: | Haywood Securities Inc.
|
| Pricing date: | Sept. 28
|
| Stock symbol: | Toronto: CGA
|
| Stock price: | C$1.22 at close Oct. 1
|
|
|
| Shares:
|
| Price: | C$0.83
|
|
|
| Note
|
| Price: | $1,000
|
| Maturity: | Five years
|
| Coupon: | 12%
|
|
|
| Warrants
|
| Warrants: | 250 warrants per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.03
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
