By Angela McDaniels
Tacoma, Wash., Sept. 25 - Hawthorne Gold Corp. plans to raise up to C$4.5 million through a private placement of shares and a non-brokered private placement of units, according to a company news release.
The company will sell up to 3.71 million flow-through common shares through J.F. Mackie & Co. Ltd. for C$0.54 each, generating up to C$2 million of proceeds.
The agent will have an over-allotment option for 1,845,555 flow-through shares.
In the non-brokered placement, Hawthorne will sell up to 5,555,555 units at C$0.45 apiece for a total of up to C$2.5 million.
Each unit will consist of one common share and one-half of a warrant, with each whole warrant exercisable for one common share at a price of C$0.55 for 12 months.
The warrants can be accelerated if the company's common shares close at or above C$0.75 for 10 consecutive trading days.
Both placements are expects to close by Oct. 15.
Proceeds will be used to fund the continued resource and mine development of the Cassiar Gold Mine and Taurus gold deposit and for general corporate working capital.
Hawthorne Gold is a gold exploration and development company based in Vancouver, B.C.
| Issuer: | Hawthorne Gold Corp.
|
| Issue: | Flow-through common shares, units of one common share and one-half of a warrant
|
| Pricing date: | Sept. 25
|
| Settlement date: | By Oct. 15
|
| Stock symbol: | TSX Venture: HGC
|
| Stock price: | C$0.42 at close Sept. 24
|
|
|
| Flow-through shares
|
| Amount: | C$2 million
|
| Shares: | 3.71 million
|
| Greenshoe: | For 1,845,555 shares
|
| Price: | C$0.54
|
| Warrants: | No
|
| Agent: | J.F. Mackie & Co. Ltd.
|
|
|
| Units
|
| Amount: | C$2.5 million
|
| Units: | 5,555,555
|
| Price: | C$0.45
|
| Warrants: | One-half of a warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.55
|
| Agent: | Non-brokered
|
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