Greenshoe exercised for C$5.19 million; Haywood Securities was agent
By Devika Patel
Knoxville, Tenn., March 6 - Donner Metals Ltd. said it took in C$15.19 million in a private placement of units and stock. Haywood Securities Inc. was the lead agent for the best-efforts deal, which priced for C$10 million with a C$5 million greenshoe on Feb. 24. The greenshoe was increased to C$6.3 million on Feb. 27.
The company sold 14.75 million units of one common share and one half-share warrant at C$0.25 per unit and 41,071,500 flow-through shares at C$0.28 per share. Each whole warrant will be exercisable at C$0.32 for two years.
The price per flow-through share and strike price are 7.69% and 23.08% premiums, respectively, to the company's C$0.26 closing share price on Feb. 23.
Proceeds will be used for the company's portion of the capital expenditures required to complete construction of the Bracemac-McLeod zinc mine, for exploration expenditures at its projects in Quebec and for other general corporate and working capital purposes.
Donner is a copper, gold and silver exploration company based in Vancouver, B.C.
| Issuer: | Donner Metals Ltd.
|
| Issue: | Units of one common share and one half-share warrant; flow-through shares
|
| Amount: | C$15,187,520 (including C$5,187,520 greenshoe exercise)
|
| Pricing date: | Feb. 24
|
| Upsized: | Feb. 27
|
| Settlement date: | March 6
|
| Agent: | Haywood Securities Inc. (lead)
|
| Stock symbol: | TSX Venture: DON
|
| Stock price: | C$0.26 at close Feb. 23
|
| Market capitalization: | C$41.95 million
|
|
|
| Units
|
| Amount: | C$3,687,500
|
| Units: | 14.75 million
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.32
|
|
|
| Flow-through shares
|
| Amount: | C$11,500,020
|
| Shares: | 41,071,500
|
| Price: | C$0.28
|
| Warrants: | No
|
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