By Sheri Kasprzak
Atlanta, April 5 - Eastern Platinum Ltd., a company to be amalgamated from Elgin Resources Inc. and Jonpol Explorations Ltd., plans to raise C$30 million in a private placement.
The offering includes up to 20 million subscription receipts at C$1.50 each.
The receipts are exchangeable for one unit upon the completion of the amalgamation of Elgin and Jonpol into Eastern Platinum. The units include one share and one half-share warrant. The full warrants allow for an additional share at C$2.00 each for three years.
A syndicate of underwriters co-led by GMP Securities Ltd. and Canaccord Capital Corp. and including Salman Partners Inc. and Raymond James Ltd. has an over-allotment option for up to 3,333,333 receipts.
Under the terms of the amalgamation, Elgin and Jonpol will convert their shares into shares of Eastern Platinum on a basis of one share of Eastern Platinum for all shares of Elgin and one share of Eastern Platinum for every four shares of Jonpol.
Based in Vancouver, B.C., Eastern Platinum is a platinum exploration company. It plans to use the proceeds from the deal for mining and exploration in South Africa.
| Issuer: | Eastern Platinum Ltd.
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| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant
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| Amount: | C$30 million (maximum)
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| Receipts: | 20 million (maximum)
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| Greenshoe: | For up to 3,333,333 receipts
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| Price: | C$1.50
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| Warrants: | One half-share warrant per unit, upon exchange of receipts
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| Warrant expiration: | Three years
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| Warrant strike price: | C$2.00
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| Underwriters: | GMP Securities Ltd. (lead); Canaccord Capital Corp. (lead); Salman Partners Inc.; Raymond James Ltd.
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| Pricing date: | April 5
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