Proceeds slated for exploration, development of Santo Domingo Property
By Devika Patel
Knoxville, Tenn., Sept. 22 - Far West Mining Ltd. said it will now sell 2,646,860 units at C$4.10 apiece in a private placement of units with Pacific Road Resources Funds, increasing the deal to C$10.85 million from C$10 million. The offering priced on Tuesday.
The units consist of one common share and one warrant. Each two-year warrant will be exercisable at C$5.35 in the first year and at C$5.85 in the second.
The strike prices are 10.31% and 20.62% premiums, respectively, to C$4.85, the Sept. 20 closing share price.
Settlement is expected by Oct. 15.
Proceeds will be used for development of the Santo Domingo Property in Chile and for exploration and working capital.
"Pacific Road Resources Funds made an initial investment in the company in 2008," president and chief executive Rick Zimmer said in a press release at pricing.
"We are very pleased that Pacific Road Resources Funds are increasing their investment during this important phase of development while the company pursues strategic transactions."
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 common share and one warrant
|
| Amount: | C$10,852,126
|
| Units: | 2,646,860
|
| Price: | C$4.10
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$5.35 in the first year, C$5.85 in the second year
|
| Investor: | Pacific Road Resources Funds
|
| Pricing date: | Sept. 21
|
| Upsized: | Sept. 22
|
| Settlement date: | Oct. 15
|
| Stock symbol: | Toronto: FWM
|
| Stock price: | C$4.85 at close Sept. 20
|
| Market capitalization: | C$296.22 million
|
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