Deal funds Kamistiatusset project, corporate purposes, working capital
By Devika Patel
Knoxville, Tenn., Nov. 29 - Alderon Resource Corp. said on Friday it will sell 7.3 million units on a bought-deal basis in a private placement via a syndicate of underwriters led by Haywood Securities Inc. There is a C$4.02 million greenshoe for the C$16.06 million deal.
The company will sell the units of one common share and one half-share warrant at C$2.20 apiece. Each whole two-year warrant will be exercisable at C$2.80. The strike price reflects a 15.23% premium to the Nov. 25 closing share price of C$2.43.
Proceeds will be to advance the company's Kamistiatusset project in the Labrador Trough iron ore district in Canada and for general corporate and working capital purposes.
Alderon is a Vancouver, B.C.-based iron ore exploration and development company.
| Issuer: | Alderon Resource Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$16.06 million
|
| Greenshoe: | C$4,015,000
|
| Units: | 7.3 million
|
| Price: | C$2.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.80
|
| Agent: | Haywood Securities Inc. (lead)
|
| Pricing date: | Nov. 26
|
| Stock symbol: | TSX Venture: ADV
|
| Stock price: | C$2.36 at close Nov. 26
|
| Market capitalization: | C$80.14 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
