Proceeds fund Cerro Jumil project, general working capital purposes
By Devika Patel
Knoxville, Tenn., May 24 - Esperanza Resources Corp. said it settled a C$34.02 million private placement of special warrants. The deal priced for C$10 million with a 15% greenshoe on May 2 and was increased to C$30 million with a C$4.5 million greenshoe on May 4.
The company sold 27,214,000 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. Of the warrants, 3,214,000 were part of the partially exercised greenshoe.
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.
The deal was conducted by a syndicate of agents co-led by Cormark Securities Inc. and National Bank Financial Inc. and including Canaccord Genuity Corp. and Stonecap Securities Inc.
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$34,017,500 (including C$4,017,500 greenshoe)
|
| Special warrants: | 27,214,000
|
| 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. and National Bank Financial Inc. (co-leads), Canaccord Genuity Corp. and Stonecap Securities 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$55.63 million
|
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