Company will sell Taifeng subsidiary 4 million more shares in February
By Marisa Wong
Madison, Wis., Jan. 13 - Ferrowest Ltd. placed 5 million shares at A$0.20 per share with TFA International Pty. Ltd., raising A$1 million, according to a company press release. The company placed 5 million shares at the same price and with the same investor on Dec. 19.
TFA will subscribe for an additional 4 million shares in February, also at A$0.20 per share, to raise the remaining A$800,000 of the first tranche, as announced in September.
The price per share is a 277.4% premium to the closing share price of A$0.053 on Jan. 12.
The company said it plans to complete a second tranche for A$2 million. The second tranche is subject to approval from the Chinese government sometime in the first half of 2012. Once approval is granted, the company will sell TFA another 10 million shares at A$0.20 each, along with 18 million options. The options are exercisable at A$0.24 each for two years.
In connection with the placement, TFA will earn a 66.7% joint venture interest in the Yogi Mine Project in Western Australia by funding A$20 million of direct project expenditure.
Ferrowest is a Belmont, Western Australia-based mineral exploration company. TFA is a wholly owned subsidiary of Sichuan Taifeng Group of China, an air and gas compressor, iron ore and mineral supplier.
| Issuer: | Ferrowest Ltd.
|
| Issue: | Shares
|
| Amount: | A$4.8 million
|
| Shares: | 24 million
|
| Price: | A$0.20
|
| Options: | 18 million
|
| Option expiration: | Two years
|
| Option strike price: | A$0.24
|
| Investor: | TFA International Pty. Ltd.
|
| Announcement date: | Sept. 19
|
| Settlement dates: | Dec. 19 (for A$1 million); Jan. 13 (for A$1 million)
|
| Stock symbol: | Australia: FWL
|
| Stock price: | A$0.053 at close Jan. 12
|
| Market capitalization: | A$6.1 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
