Primary Capital leads deal to fund purchase of Nunavut mineral lands
By Susanna Moon
Chicago, Feb. 17 - Canadian Orebodies Inc. announced an agreement with Primary Capital Inc. to lead a syndicate of agents to complete a private placement of up to 15 million subscription receipts on a best-efforts agency basis for proceeds of up to C$5.25 million.
The company will sell the subscription receipts at C$0.35 each.
The proceeds will be placed in escrow. Upon the release of the escrowed funds, each subscription receipt will be automatically converted into one unit consisting of a common share and half-share warrant. Each warrant is exercisable at C$0.475 each for 18 months after the escrowed funds are released.
The strike price represents a 25% discount to the Feb. 16 closing share price.
Insiders of Orebodies plan to purchase between C$15,000 and C$50,000 of the offering.
The agents also include Pope & Co. Ltd. and Jones, Gable & Co. Ltd.
Proceeds will be used to acquire up to a 100% legal and beneficial interest in the Inuit-owned lands mineral exploration agreement with Nunavut Tunngavik Inc., which covers the Haig Inlet iron ore project, located on the Belcher Islands, Nunavut, Canada. Proceeds also will be used for general corporate purposes.
The release of the escrowed funds requires the receipt of shareholder approval of the acquisition by 5 p.m. ET on July 8.
The offering is expected to close on March 9.
Canadian Orebodies is a junior natural resource exploration and development company based in Timmins, Ont.
| Issuer: | Canadian Orebodies Inc.
|
| Issue: | Subscription receipts convertible into units of one common share and one half-share warrant
|
| Amount: | C$5.25 million
|
| Units: | 15 million
|
| Price: | C$0.35
|
| Warrants: | Half-share per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.475
|
| Agents: | Primary Capital Inc. (lead), Pope & Co. Ltd. and Jones, Gable & Co. Ltd.
|
| Pricing date: | Feb. 17
|
| Settlement date: | March 9
|
| Stock symbol: | TSX Venture: CO
|
| Stock price: | C$0.38 at close Feb. 16
|
| Market capitalization: | C$23.62 million
|
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