Proceeds used for exploration, working capital and corporate purposes
By Devika Patel
Knoxville, Tenn., Feb. 3 - Frontline Gold Corp. said it raised C$350,300 in the second tranche of a C$1 million non-brokered private placement of stock and units on Feb. 2. The deal priced on Nov. 3 and raised C$416,750 on Dec. 19.
The company is selling 2,105,264 flow-through common shares at C$0.095 per share and 11,428,571 units of one common share and a half-share warrant at C$0.07 per unit. It sold 1,389,473 shares and 4,067,857 units in the first tranche; Frontline sold 200,000 shares and 4,732,856 units in the second tranche.
Each whole warrant is exercisable at C$0.12 for 18 months.
The price per flow-through common share represents an 18.75% premium to C$0.08, the Nov. 2 closing share price. The warrant strike price is a 50% premium to that price.
All Group Financial Services was paid a finder's fee.
Proceeds will be used for exploration at the company's Menderes property and its Poly/Stewart property, working capital and general corporate purposes.
Halifax, N.S.-based Frontline is a gold explorer.
| Issuer: | Frontline Gold Corp.
|
| Issue: | Flow-through common shares, units of one common share and a half-share warrant
|
| Amount: | C$1 million
|
| Agent: | Non-brokered
|
| Pricing date: | Nov. 3
|
| Settlement date: | Dec. 19 (for C$416,750), Feb. 2 (for C$350,300)
|
| Stock symbol: | TSX Venture: FGC
|
| Stock price: | C$0.08 at close Nov. 3
|
| Market capitalization: | C$5.19 million
|
|
|
| Flow-through common shares
|
| Amount: | C$200,000
|
| Shares: | 2,105,264
|
| Price: | C$0.095
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$800,000
|
| Units: | 11,428,571
|
| Price: | C$0.07
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.12
|
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