By Laura Lutz
Des Moines, July 18 - Australian Solomons Gold Ltd. canceled the C$110 million sale of subscription receipts and units that it announced on May 16. Instead, the company plans to raise up to C$15,007,500 from a new private placement of subscription receipts.
The company plans to sell up to 13.05 million subscription receipts at C$1.15 apiece.
Each subscription receipt will be exchangeable for one common share and one half-share warrant.
Each whole warrant will be exercisable for one common share at C$1.50 for three years.
Haywood Securities Inc. and Paradigm Capital Inc. will lead a syndicate of agents that also includes Fraser Mackenzie Ltd.
Proceeds will be used for exploration and development on the company's Gold Ridge project as well as for working capital and general corporate purposes.
The canceled placement was expected to include up to C$66 million of subscription receipts and up to C$44 million of units.
It would have been conducted through the same agents.
The company said that it decided to withdraw the C$110 million offering because it did not believe that the indicative pricing and market conditions were appropriate and because it intends to re-evaluate its current mine plans in light of recent drilling results at the Gold Ridge project.
Toronto-based Australian Solomons is a gold exploration company.
| Issuer: | Australian Solomons Gold Ltd.
|
| Issue: | Subscription receipts exchangeable for one share and one half-share warrant
|
| Amount: | C$15,007,500
|
| Subscription receipts: | 13.05 million
|
| Price: | C$1.15
|
| Warrants: | One half-share warrant per unit upon exchange
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.50
|
| Agents: | Haywood Securities Inc. (lead), Paradigm Capital Inc. (lead), Fraser Mackenzie Ltd.
|
| Pricing date: | July 18
|
| Stock symbol: | Toronto: SGA
|
| Stock price: | C$1.30 at close July 17
|
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