By Jennifer Chiou
New York, June 4 - Foundation Resources Inc. announced the wrap of its previously announced C$3.02 million private placement of units on a commercially reasonable efforts basis. It raised a total of C$2.18 million.
The company sold 4,765,000 flow-through units at C$0.42 apiece for roughly C$2 million. Each flow-through unit consists of one flow-through common share and one half-share warrant.
The company also sold 510,000 units at C$0.35 apiece for C$178,500. It had planned to sell 2.9 million of the units for proceeds of 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 were conducted by a syndicate of agents led by Canaccord Financial Ltd. and including Fraser Mackenzie Ltd. They received a cash fee of 7% as well as broker warrants for 369,250 units.
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$2,179,800
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.50
|
| Agent: | Canaccord Financial Ltd. (lead), Fraser Mackenzie Ltd.
|
| Pricing date: | May 7
|
| Settlement date: | June 3
|
| Stock symbol: | TSX Venture: FDN
|
| Stock price: | C$0.41 at close May 6
|
| C$0.35 at close June 3
|
| Market capitalization: | C$3.83 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$178,500
|
| Units: | 510,000
|
| Price: | C$0.35
|
| Warrants: | One warrant per unit
|
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