Brokered offering funds exploration, general working capital purposes
By Devika Patel
Knoxville, Tenn., Nov. 18 - Foundation Resources Inc. said it plans to conduct a private placement of units on a best-efforts basis. The company will raise C$3 million through a syndicate of agents co-led by Fraser Mackenzie Ltd. and Secutor Capital Management Corp.
The company will sell 5,883,000 flow-through units at C$0.34 apiece for C$2 million. Each flow-through unit consists of one flow-through common share and one half-share warrant.
The company also will sell 3,226,000 units at C$0.31 apiece for C$1 million. Each unit consists of one common share and one warrant.
Each whole warrant is exercisable at C$0.45 for two years. The strike price reflects a 38.46% premium to the Nov. 17 closing share price of C$0.325.
Settlement is expected on Dec. 10.
Proceeds will be used for exploration on Foundation's properties and general working capital purposes.
The mineral exploration company is based in Vancouver, B.C.
| Issuer: | Foundation Resources Inc.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, units of one common share and one warrant
|
| Amount: | C$3,000,280
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.45
|
| Agent: | Fraser Mackenzie Ltd. and Secutor Capital Management Corp. (co-leads)
|
| Pricing date: | Nov. 18
|
| Settlement date: | Dec. 10
|
| Stock symbol: | TSX Venture: FDN
|
| Stock price: | C$0.36 at close Nov. 18
|
| Market capitalization: | C$7.93 million
|
|
|
| Flow-through units
|
| Amount: | C$2,000,220
|
| Units: | 5,883,000
|
| Price: | C$0.34
|
| Warrants: | One half-share warrant per unit
|
|
|
| Units
|
| Amount: | C$1,000,060
|
| Units: | 3,226,000
|
| Price: | C$0.31
|
| Warrants: | One warrant per unit
|
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