By Sheri Kasprzak
New York, Nov. 28 - Desert Sun Mining Corp. priced and then increased the size of a private placement to C$30 million from C$20 million.
The offering includes 12 million units at C$2.50 each.
The units are comprised of one share and one warrant for a quarter of a share. The whole warrants are exercisable at C$2.50 each through Nov. 20, 2008.
Sprott Securities Inc. leads a syndicate of underwriters placing the deal. The syndicate also includes CIBC World Markets Inc., GMP Securities Ltd., Canaccord Capital Corp., Salman Partners Inc. and Pacific International Securities Inc.
The underwriters have a greenshoe for up to 4 million additional units.
The offering was announced Monday morning as a C$20 million deal comprised of 8 million units under the same terms.
Proceeds will be used for construction and development of the Morro do Vento deposit, for a pre-feasibility study and development on the Canavieras project and for working capital.
The deal is expected to close Dec. 15.
Toronto-based Desert Sun is a gold exploration company.
| Issuer: | Desert Sun Mining Corp.
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| Issue: | Units of one share and one quarter-share warrant
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| Amount: | C$30 million
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| Units: | 12 million
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| Greenshoe: | For up to 4 million units
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| Price: | C$2.50
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| Warrants: | One quarter-share warrant per unit
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| Warrant expiration: | Nov. 20, 2008
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| Warrant strike price: | C$2.50
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| Underwriters: | Sprott Securities Inc. (lead); CIBC World Markets Inc.; GMP Securities Ltd.; Canaccord Capital Corp.; Salman Partners Inc.; Pacific International Securities Inc.
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| Pricing date: | Nov. 28
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| Settlement date: | Dec. 15
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| Stock price: | C$2.65 at close Nov. 25
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