Offering proceeds slated to advance Corcoesto, Enchi gold projects
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., June 2 - Edgewater Exploration Ltd. said it plans a C$3 million non-brokered private placement of units.
The company will sell 3.75 million units of one common share and a half-share warrant at C$0.80 apiece. Each whole warrant will be exercisable at C$1.10 for two years. The strike price represents a 22.22% premium over the June 1 closing share price of C$0.90.
"We had a few institutions come to us and were interested in our story," Ryan King, vice president, told Prospect News. Given the uncertainty in the market, King said the company "saw a bit of a window" and jumped at the opportunity. "We're just happy that the market is where it is now."
"It's small," he said of the deal. "We don't want to dilute our shareholders too much."
King also remarked that Edgewater's treasury was "in good shape," with about C$6.2 million in the bank.
He added that the transaction should close sometime around June 13, but it could be sooner if all the details are hammered out quickly.
Proceeds will be used to advance the company's Corcoesto Gold Project and the Enchi Gold Project and for general working capital.
Based in Vancouver, B.C., Edgewater explores for precious metals.
| Issuer: | Edgewater Exploration Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$3 million
|
| Units: | 3.75 million
|
| Price: | C$0.80
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.10
|
| Agent: | Non-brokered
|
| Pricing date: | June 2
|
| Stock symbol: | TSX Venture: EDW
|
| Stock price: | C$0.90 at close June 1
|
| Market capitalization: | C$44.3 million
|
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