By Sheri Kasprzak
New York, March 29 - Eastern Platinum Ltd. said it has concluded a C$150 million private placement, including the fully exercised over-allotment option.
The company issued a total of 120 million subscription receipts, including the greenshoe for 16 million receipts exercised by a syndicate of placement agents led by GMP Securities LP and Canaccord Capital Corp.
Each receipt is exchangeable for a unit of one share and one half-share warrant once the company completes its acquisitions of three private companies.
The whole warrants allow for the purchase of another share at C$1.80 each for three years.
The syndicate also included Orion Securities Inc., Raymond James Ltd. and Wellington West Capital Markets.
The deal priced on March 16 as a C$130 million offering of 104 million receipts.
Proceeds will be held in escrow until those acquisitions are completed.
Of the proceeds, C$27.7 million will be used for the acquisition. Some of the proceeds will be used for exploration and development on the company's Zandfontein and Maroelabult mines and for other development costs. The rest will be used for working capital and general corporate purposes.
Based in Vancouver, B.C., Eastern is a platinum exploration company.
| 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$150 million
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| Subscription receipts: | 120 million (includes greenshoe for 16 million receipts)
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| Price: | C$1.25
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | C$1.80
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| Placement agents: | GMP Securities LP (lead), Canaccord Capital Corp. (lead), Orion Securities Inc., Raymond James Ltd., Wellington West Capital Markets
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| Pricing date: | March 16
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| Settlement date: | March 29
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| Stock symbol: | Toronto: ELR
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| Stock price: | C$1.33 at close March 28
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