By Devika Patel
Knoxville, Tenn., May 7 - Foundation Resources Inc. said it plans to conduct a C$3.02 million private placement of units on a commercially reasonable efforts basis and a C$500,000 private placement of units on a non-brokered basis.
The company will sell 4,765,000 flow-through units at C$0.42 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 2.9 million units at C$0.35 apiece for C$1.02 million. Each unit consists of one common share and one warrant.
Each whole warrant is exercisable at C$0.50 for 18 months.
These sales will be conducted by a syndicate of agents led by Canaccord Financial Ltd. and including Fraser Mackenzie Ltd.
The company also plans to raise C$500,000 by selling a combination of units on a non-brokered basis.
Settlement is expected June 3.
Proceeds will be used for exploration on the Coldstream Property and for 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$3,516,300
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.50
|
| Agent: | Canaccord Financial Ltd. (lead), Fraser Mackenzie Ltd. (for C$3,016,300), non-brokered (for C$500,000)
|
| Pricing date: | May 7
|
| Settlement date: | June 3
|
| Stock symbol: | TSX Venture: FDN
|
| Stock price: | C$0.41 at close May 6
|
| Market capitalization: | C$4.3 million
|
|
|
| Flow-through units
|
| Amount: | C$2,001,300
|
| Units: | 4,765,000
|
| Price: | C$0.42
|
| Warrants: | One half-share warrant per unit
|
|
|
| Units
|
| Amount: | C$1,015,000
|
| Units: | 2.9 million
|
| Price: | C$0.35
|
| Warrants: | One warrant per unit
|
© 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.
