Greenshoe exercised; proceeds fund construction of the Shafter mine
By Devika Patel
Knoxville, Tenn., Nov. 29 - Aurcana Corp. said it settled a C$34.35 million private placement of units. The deal, which was announced Nov. 8, priced for C$25.35 million with a 15% greenshoe on Nov. 11 and was increased to C$30 million on Nov. 15.
The company sold 52,853,000 units of one common share and one half-share warrant at C$0.65 per unit.
Each whole warrant is exercisable at C$1.00 for two years. The strike price reflects a 33.33% premium to the Nov. 10 closing share price of C$0.75.
The offering was conducted on a best-efforts basis through a syndicate of agents led by RBC Capital Markets and including BMO Capital Markets, Dundee Securities Ltd. and Stonecap Securities Inc.
Proceeds will be used for ongoing construction of the Shafter mine, mill expansion at the La Negra mine, general corporate purposes and working capital.
Aurcana is a Vancouver, B.C., silver and base metals producer.
| Issuer: | Aurcana Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$34,354,450 (including C$4,354,450 greenshoe)
|
| Units: | 52,853,000
|
| Price: | C$0.65
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Agents: | RBC Capital Markets (lead), BMO Capital Markets, Dundee Securities Ltd. and Stonecap Securities Inc.
|
| Announcement date: | Nov. 8
|
| Pricing date: | Nov. 11
|
| Upsized: | Nov. 15
|
| Settlement date: | Nov. 29
|
| Stock symbol: | TSX Venture: AUN
|
| Stock price: | C$0.75 at close Nov. 10
|
| Market capitalization: | C$246.75 million
|
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