Proceeds from non-brokered offering will supplement working capital
By Devika Patel
Knoxville, Tenn., March 18 - Fire River Gold Corp. said it concluded the initial tranche of a non-brokered private placement of units. The deal priced for C$7 million on March 4 and raised C$2.21 million in this closing.
The company is selling 14 million units of one common share and a half-share warrant at C$0.50 per unit. It sold 4,425,000 units in the first tranche.
Each whole warrant is exercisable at C$0.70 for 18 months. The strike price reflects a 25% premium to the March 3 closing share price of C$0.56.
Proceeds will be used to supplement the company's working capital budget by covering the operating costs as the Nixon Fork Gold Mine Project ramps up to full production, to evaluate and expand the exploration drilling program and to review potential acquisitions.
Vancouver, B.C.-based Fire River Gold is a gold explorer.
| Issuer: | Fire River Gold Corp.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$7 million
|
| Units: | 14 million (4,425,000 in first tranche)
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.70
|
| Agent: | Non-brokered
|
| Pricing date: | March 4
|
| Settlement date: | March 18 (for C$2,212,500)
|
| Stock symbol: | TSX Venture: FAU
|
| Stock price: | C$0.56 at close March 3
|
| Market capitalization: | C$39.24 million
|
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