By Sheri Kasprzak
New York, Nov. 10 - Energy Metals Corp. said it priced a C$6.2 million private placement and agreed to advance up to $7 million to Standard Uranium Inc. as part of its acquisition of Standard.
Under the terms of the non-brokered private placement, Energy Metals will issue up to 2 million shares at C$3.10 each.
Proceeds will be used for property acquisition and development as well as working capital.
The 4% loan granted to Standard matures in three years and is convertible into shares at $1.45 each. Under the conversion terms, Energy Metals may not acquire any more than 19.5% of the then-outstanding shares of Standard.
Under the terms of the acquisition, Energy Metals plans to buy all of the outstanding shares of Standard Uranium on the basis of 0.64 shares of Energy Metals for every share of Standard. Standard will become a subsidiary of Energy.
Standard currently has 12,809,926 outstanding shares.
Based in Vancouver, B.C., Energy Metals is a mineral exploration company.
| Issuer: | Energy Metals Corp.
|
| Issue: | Stock
|
| Amount: | C$6.2 million (maximum)
|
| Shares: | 2 million (maximum)
|
| Price: | C$3.10
|
| Warrants: | No
|
| Placement agent: | Non-brokered
|
| Pricing date: | Nov. 10
|
| Stock price: | C$3.12 at close Nov. 10
|
|
|
| Issuer: | Standard Uranium Inc.
|
| Issue: | Convertible loan
|
| Amount: | $7 million
|
| Maturity: | Three years
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion price: | $1.45
|
| Warrants: | No
|
| Investor: | Energy Metals Corp.
|
| Pricing date: | Nov. 10
|
| Stock price: | $1.145 at close Nov. 10
|
|
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