Deal funds Kamistiatusset project, corporate purposes, working capital
By Devika Patel
Knoxville, Tenn., Dec. 16 - Alderon Resource Corp. said it completed a private placement via a syndicate of underwriters led by Haywood Securities Inc. The bought-deal offering priced for C$16.06 million with a C$4.02 million greenshoe on Nov. 26 and raised C$20.08 million.
The company sold 9,125,000 units of one common share and one half-share warrant at C$2.20 apiece. Of the units, 1,825,000 were part of the fully exercised greenshoe.
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$20.08 million (including C$4,015,000 greenshoe)
|
| Units: | 9,125,000
|
| 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
|
| Settlement date: | Dec. 16
|
| Stock symbol: | TSX Venture: ADV
|
| Stock price: | C$2.36 at close Nov. 26
|
| Market capitalization: | C$109.52 million
|
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