Oversubscribed deal raises proceeds for exploration on gold properties
By Devika Patel
Knoxville, Tenn., Feb. 7 - Eaglecrest Explorations Ltd. said it settled the second and final tranche of a non-brokered private placement of units. The deal priced for C$6 million on Nov. 19 and was oversubscribed and increased to C$6.44 million on Dec. 23. The company raised C$3.44 million on Dec. 30 and C$2.99 million in this tranche for a total of C$6.43 million.
The company sold a total of 21,442,594 units at C$0.30 apiece, with 11,478,258 units sold in the first tranche and 9,964,336 units sold in the second. The units each consist of one common share and one warrant, with each warrant exercisable at C$0.45 for two years. The strike price reflects an 18.42% premium to the Nov. 18 closing share price of C$0.38.
Proceeds will be used for an aggressive exploration program on the Fredonia and Venecia gold properties in Colombia, maintaining the San Simon project in Bolivia and general working capital. The majority of funds will be focused on Colombia, where the company plans to implement geology and geophysical data collection, followed by an aggressive drill campaign on selected targets in mid-2011.
Based in Vancouver, B.C., Eaglecrest is a gold exploration company.
| Issuer: | Eaglecrest Explorations Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$6,432,778
|
| Units: | 21,442,594
|
| Price: | C$0.30
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.45
|
| Agent: | Non-brokered
|
| Pricing date: | Nov. 19
|
| Upsized: | Dec. 23
|
| Settlement dates: | Dec. 30 (for C$3,443,477), Feb. 7 (for C$2,989,301)
|
| Stock symbol: | TSX Venture: EEL
|
| Stock price: | C$0.38 at close Nov. 18
|
| Market capitalization: | C$22.06 million
|
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