By Devika Patel
Knoxville, Tenn., Nov. 29 - Far West Mining Ltd. said it will conduct a C$10.17 million private placement of units.
The company will sell 2.45 million units at C$4.15 each. The units consist of one share and one half-share warrant with each whole warrant exercisable at C$5.25 for 30 months.
The warrants may expire sooner if Far West's common shares close higher than C$6.50 for 20 consecutive trading days. In that case, the warrants will expire on the 30th day after the company notifies holders.
Dundee Securities Corp., CIBC World Markets Inc. and Genuity Capital Markets will be the agents and receive a 6% cash commission and broker warrants exercisable for a number of common shares equal to 6% of the number of units sold. The broker warrants also will be exercisable at C$5.25 per share for 30 months.
The agents have a greenshoe for 1.25 million units, or C$5,187,500.
Proceeds will be used for exploration, development and general working capital.
Vancouver, B.C.-based Far West is a mineral exploration company primarily engaged in the evaluation, acquisition and exploration of mineral properties in Chile, Argentina and Australia.
| Issuer: | Far West Mining Ltd.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$10,167,500
|
| Units: | 2.45 million
|
| Greenshoe: | 1.25 million units, or C$5,187,500
|
| Price: | C$4.15
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 30 months
|
| Warrant strike price: | C$5.25
|
| Agent: | Dundee Securities Corp., CIBC World Markets Inc., Genuity Capital Markets
|
| Fees: | 6% in cash and warrants
|
| Pricing date: | Nov. 29
|
| Stock symbol: | Toronto: FWM
|
| Stock price: | C$4.30 at close Nov. 29
|
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