Proceeds fund Cerro Jumil project, general working capital purposes
By Devika Patel
Knoxville, Tenn., May 4 - Esperanza Resources Corp. said it has increased a private placement of special warrants to C$30 million with a C$4.5 million greenshoe; the deal priced for C$10 million with a 15% greenshoe on May 2.
The company will now sell 24 million special warrants at C$1.25 each on a best efforts basis. The price per special warrant is a 10.71% discount to the May 1 closing share price of C$1.40.
The special warrants are convertible into units of one common share and one half-share warrant, with each whole, five-year warrant exercisable at C$1.80. The strike price is a 28.57% premium to the May 1 closing share price.
Cormark Securities Inc. is the lead agent of a syndicate that includes National Bank Financial Inc.
Settlement is expected May 24.
Proceeds will be used to advance the Cerro Jumil project in Mexico and for general working capital purposes.
The gold and silver explorer is based in Vancouver, B.C.
| Issuer: | Esperanza Resources Corp.
|
| Issue: | Special warrants convertible into units of one common share and one half-share warrant
|
| Amount: | C$30 million
|
| Greenshoe: | C$4.5 million
|
| Special warrants: | 24 million
|
| Price: | C$1.25
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$1.80
|
| Agent: | Cormark Securities Inc. (lead), National Bank Financial Inc.
|
| Pricing date: | May 2
|
| Upsized: | May 4
|
| Settlement date: | May 24
|
| Stock symbol: | TSX Venture: EPZ
|
| Stock price: | C$1.40 at close May 1
|
| Market capitalization: | C$63.75 million
|
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