Deal finances company’s exploration program on its Yukon properties
By Devika Patel
Knoxville, Tenn., March 17 – Goldstrike Resources Ltd. said some investors in an oversubscribed non-brokered private placement of units indicated on Wednesday, after the market close, that they would withdraw orders for C$1.7 million of the units unless the company added additional incentives or more favorable financial terms for the financing. As a result, the company will be postponing the placement pending ongoing discussions with the investors.
Goldstrike said it raised C$2.2 million in the offering on Wednesday. The company intends to continue with the private placement. If the investors seeking to renegotiate the offering’s terms do not confirm their original subscriptions on Thursday, Goldstrike plans to cancel their subscriptions and complete the financing with other interested parties.
The company said on Wednesday that it had sold flow-through units of one flow-through common share and one warrant at C$0.17 per unit and units of one common share and one warrant at C$0.13 per unit.
Each flow-through unit warrant will be exercisable at C$0.30 for two years. The strike price is a 114.29% premium to the company’s C$0.14 closing share price on March 15.
Each three-year unit warrant will be exercisable at C$0.25, a 78.57% premium to the March 15 closing share price.
Proceeds will be used for the company’s 2016 exploration and drilling program on its Yukon properties and general working capital.
Goldstrike is a gold exploration company based in Vancouver, B.C.
| Issuer: | Goldstrike Resources Ltd.
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| Issue: | Flow-through units of one flow-through common share and one warrant, units of one common share and one warrant
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| Amount: | C$2.2 million
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| Warrants: | One warrant per unit
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| Agent: | Non-brokered
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| Settlement date: | March 16
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| Stock symbol: | TSX Venture: GSR
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| Stock price: | C$0.14 at close March 15
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| Market capitalization: | C$14.91 million
|
|
|
| Flow-through units
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| Price: | C$0.17
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$0.30
|
|
|
| Units
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| Price: | C$0.13
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.25
|
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