Industrial Alliance conducts offering to fund company's exploration
By Devika Patel
Knoxville, Tenn., Sept. 23 - Explor Resources Inc. said it took in C$7.53 million in the first tranche of a private placement of units on Thursday. The deal priced for C$5.5 million on Aug. 30, but the company said Friday that it now plans to raise up to C$9.5 million. Agent Industrial Alliance Securities Inc. has a 15% greenshoe and is conducting the offering on a commercially reasonable basis.
The company is selling C$2.5 million of units of one common share and one half-share warrant at C$0.40 per unit and C$7 million of flow-through units of one flow-through common share and one half-share warrant at C$0.50 per flow-through unit.
It sold 1 million units and 14.25 million flow-through units in this tranche.
Each whole warrant will be exercisable at C$0.60 for 18 months. The strike price represents a 48.15% premium to the Aug. 29 closing share price of C$0.405.
Settlement of a second tranche is expected Oct. 14.
Proceeds will be used for exploration.
Explor is a gold and base metals exploration company based in Rouyn-Noranda, Quebec.
| Issuer: | Explor Resources Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$9.5 million
|
| Greenshoe: | 15%
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.60
|
| Agent: | Industrial Alliance Securities Inc.
|
| Pricing date: | Aug. 30
|
| Upsized: | Sept. 23
|
| Settlement date: | Sept. 22 (for C$7,525,000), Oct. 14
|
| Stock symbol: | TSX Venture: EXS
|
| Stock price: | C$0.405 at close Aug. 29
|
| Market capitalization: | C$39.32 million
|
|
|
| Units
|
| Amount: | C$2.5 million
|
| Price: | C$0.40
|
|
|
| Flow-through units
|
| Amount: | C$7 million
|
| Price: | C$0.50
|
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