Stonecap Securities Inc. and CIBC World Markets Inc. are the agents
By Devika Patel
Knoxville, Tenn., Dec. 6 - Frontline Gold Corp. said it plans a private placement of units and flow-through shares. The deal was announced on Oct. 20 and will raise C$5.25 million.
The company will sell 28,572,000 units at C$0.14 apiece on a best-efforts basis via agents Stonecap Securities Inc. and CIBC World Markets Inc.
Each unit consists of one common share and one half-share warrant, with each whole three-year warrant exercisable at C$0.18 in the first year and at C$0.20 in the second and third years. The initial strike price reflects a 10% discount to the Dec. 3 closing share price of C$0.20.
Additionally, the company will sell 7,353,000 flow-through common shares at C$0.17 per share for C$1.25 million. The price per share is a 15% discount to the Dec. 3 closing price.
Settlement is expected Dec. 15.
Proceeds will be used for exploration at the company's Niaouleni property in Mali, working capital and general corporate purposes.
Halifax, N.S.-based Frontline is a gold explorer.
| Issuer: | Frontline Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$5.25 million
|
| Agents: | Stonecap Securities Inc. and CIBC World Markets Inc.
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 15
|
| Stock symbol: | TSX Venture: FGC
|
| Stock price: | C$0.20 at close Dec. 3
|
| Market capitalization: | C$10.34 million
|
|
|
| Units
|
| Amount: | C$4 million
|
| Units: | 28,572,000
|
| Price: | C$0.14
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.18 in the first year, C$0.20 in the second and third years
|
|
|
| Shares
|
| Amount: | C$1.25 million
|
| Units: | 7,353,000
|
| Price: | C$0.17
|
| Warrants: | No
|
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