Greenshoe fully exercised; proceeds for exploration programs in Canada
By Devika Patel
Knoxville, Tenn., Nov. 10 - GWR Resources Inc. said it completed the second and final tranche of a C$1.54 million private placement of units. The deal, which was conducted on a commercially reasonable efforts basis via agent Canaccord Genuity Corp., priced for C$1.4 million with a C$140,000 greenshoe on Sept. 3. The company raised C$896,764 on Oct. 4 and C$643,236 in the final tranche.
The company sold a total of 5,213,066 units of one common share and a warrant at C$0.15 apiece for C$781,960. Each 18-month warrant will be exercisable at C$0.25.
GWR also sold 4,737,750 flow-through units of one flow-through common share and a warrant at C$0.16 apiece for C$758,040. Each one-year warrant will be exercisable at C$0.25.
The strike price for the warrants represents a 35.14% premium to the Sept. 2 closing share price of C$0.185.
The company sold 2,467,750 flow-through units and 3,346,160 units in the first tranche and 2.27 million flow-through units and 1,866,906 units in the second.
Proceeds will be used for exploration on the company's Lac La Hache property in British Columbia and its Saint Sabine property in Quebec, as well as for general working capital.
"I am delighted to have completed this private placement, including full exercise of the over-allotment option," GWR's president Irvin Eisler said in a press release.
"GWR is actively continuing its 2010 exploration program at our flagship Lac La Hache property. We are very encouraged by the results to date, as drilling has indicated a well developed, multi-gram gold trend in the Aurizon South Zone, during a period with record high gold prices, and a detailed ground magnetic survey and bedrock sampling program has supported new discovery and extension of the high-copper magnetite skarns within our Spout Lake Zones."
GWR is a resource exploration company based in Armstrong, B.C.
| Issuer: | GWR Resources Inc.
|
| Issue: | Units of one common share and a warrant, flow-through units of one flow-through common share and a warrant
|
| Amount: | C$1.54 million (including C$140,000 greenshoe)
|
| Warrants: | One warrant per unit
|
| Warrant strike price: | C$0.25
|
| Agent: | Canaccord Genuity Corp.
|
| Pricing date: | Sept. 3
|
| Settlement date: | Oct. 4 (for C$896,764), Nov. 10 (for C$643,236)
|
| Stock symbol: | TSX Venture: GWQ
|
| Stock price: | C$0.185 at close Sept. 2
|
| Market capitalization: | C$16.18 million
|
|
|
| Units
|
| Amount: | C$781,960
|
| Units: | 5,213,066
|
| Price: | C$0.15
|
| Warrant expiration: | 18 months
|
|
|
| Flow-through units
|
| Amount: | C$758,040
|
| Units: | 4,737,750
|
| Price: | C$0.16
|
| Warrant expiration: | One year
|
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