By Marisa Wong
Milwaukee, March 29 - First Point Minerals Corp. announced that it plans to raise up to C$5 million through a private placement of up to 10 million units at a price of C$0.50 per unit.
Each unit will consist of one common share and one-half of a non-transferable share purchase warrant. Each whole warrant entitles the holder to purchase, for a period of two years from the closing of the placement, one common share at a price of C$0.65 per share for the first year and C$0.80 per share for the second year.
The warrants will also contain a provision that will enable First Point to force exercise of the warrants if during the term of any unexercised warrant beginning four months after closing, the common shares of the company trade for a period of 20 consecutive trading days at a price of C$1.10 or greater.
Cliffs Natural Resources intends to subscribe for 15% of the issue, according to the announcement.
Closing is expected to occur on April 19. The issued units will be subject to a four-month hold.
The company said it plans to use net proceeds to advance its nickel alloy properties in North America, as wells as international exploration for additional properties, and for general corporate purposes.
First Point is a Vancouver, B.C-based precious metal exploration company.
| Issuer: | First Point Minerals Corp.
|
| Issue: | Units of one common share and one-half of a share purchase warrant
|
| Amount: | C$5 million
|
| Units: | 10 million
|
| Price: | C$0.50
|
| Warrants: | Each whole warrant to purchase one common share
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60 for first year, C$0.80 for second year
|
| Investor: | Cliffs Natural Resources (for 15%)
|
| Pricing date: | March 29
|
| Settlement date: | April 19
|
| Stock symbol: | TSX Venture: FPX
|
| Stock price: | C$0.48 at close March 29
|
| Market capitalization: | C$27.74 million
|
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