Proceeds from oversubscribed offering will supplement working capital
By Devika Patel
Knoxville, Tenn., April 8 - Fire River Gold Corp. said it settled the second and final tranche of a C$7.41 million non-brokered private placement of units, raising C$5.2 million. The deal priced for C$7 million on March 4 and raised C$2.21 million on March 18; the company increased the oversubscribed offering to C$7.5 million on April 5.
The company sold 14,815,326 units of one common share and a half-share warrant at C$0.50 apiece. It sold 4,425,000 units in the first tranche and 10,390,326 units in the second.
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$7,407,663
|
| Units: | 14,815,326
|
| 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
|
| Upsized: | April 5
|
| Settlement date: | March 18 (for C$2,212,500), April 8 (for C$5,195,163)
|
| Stock symbol: | TSX Venture: FAU
|
| Stock price: | C$0.56 at close March 3
|
| Market capitalization: | C$43.19 million
|
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