By Sheri Kasprzak
Atlanta, May 26 - East West Resource Corp. has downsized two of its previously announced private placements to C$2 million from C$3 million.
The company now plans to sell up to 8,333,333 units at C$0.12 each in a brokered offering. A maximum of C$750,000 of the units will be sold on a flow-through basis and a maximum of C$250,000 will be sold on a non flow-through basis for C$1 million.
The units are comprised of one share and one warrant. The warrants allow for an additional share at C$0.15 each for two years.
Power One Capital Markets Ltd. will be the placement agent on that portion of the offering.
In a non-brokered offering, the company will sell up to 8,333,333 units at C$0.12 each to two U.K.-based corporations.
Those units include one non flow-through share and one warrant. The warrants allow for an additional share at C$0.15 each for two years.
The investors of the non-brokered offering have the option to buy up to C$12 million in additional units for five years. Those units will be priced at the lowest of the 15-day weighted average trading price or the offering price of any concurrent offering from East West. The warrants will be exercisable at a price equal to the investment option unit price plus a premium of up to 25%.
The two private placements were first announced April 14. The brokered deal initially included up to 13,333,333 units at C$0.15 each. The warrants had been exercisable at C$0.20 each for two years.
The non-brokered deal had originally included up to 6,666,667 units at C$0.15 each under the same terms as the brokered deal.
The proceeds from the brokered deal will be used for exploration on base metal and gold properties in the Shebandowan Belt near Thunder Bay.
The proceeds from the non-brokered deal will be used to acquire and generate new base metal, gold and platinum group element properties.
Based in Vancouver, B.C., East West is a gold and base metals exploration and development company.
Brokered
| Issuer: | East West Resource Corp.
|
| Issue: | Units of one share and one warrant
|
| Amount: | C$1 million
|
| Units: | 8,333,333
|
| Price: | C$0.12
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
| Placement agent: | Power One Capital Markets Ltd.
|
| Pricing date: | May 25
|
| Stock price: | C$0.125 at close May 25
|
|
|
| Non-brokered
|
| Issuer: | East West Resource Corp.
|
| Issue: | Units of one share and one warrant
|
| Amount: | C$1 million
|
| Units: | 8,333,333
|
| Price: | C$0.12
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
| Pricing date: | May 25
|
| Stock price: | C$0.125 at close May 25
|
|
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