Deal conducted on brokered, non-brokered basis to fund gold projects
By Devika Patel
Knoxville, Tenn., Jan. 24 - Helio Resource Corp. said it plans a private placement of units. The deal will raise C$8 million through a syndicate of agents led by Scotia Capital Inc. and Stifel Nicolaus Canada Inc. The syndicate also includes PI Financial Corp. and Macquarie Capital Markets Canada Ltd. Helio also plans to raise C$2 million on a non-brokered basis.
The company will sell units of one common share and one half-share warrant at C$0.40 apiece on a reasonable commercial efforts basis. Each whole warrant will be exercisable at C$0.50 for two years. The strike price reflects a 12.36% premium to the Jan. 21 closing share price of C$0.445.
Settlement is expected Feb. 15.
Proceeds will be used to advance the SMP gold project in Tanzania and the Damara gold project in Namibia and for general corporate working capital purposes.
Based in Vancouver, B.C., Helio is a mineral exploration company, focused on high-quality project generation in southern Africa.
| Issuer: | Helio Resource Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$10 million
|
| Price: | C$0.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.50
|
| Agents: | Scotia Capital Inc. and Stifel Nicolaus Canada Inc. (leads), PI Financial Corp. and Macquarie Capital Markets Canada Ltd. (for C$8 million), non-brokered (for C$2 million)
|
| Pricing date: | Jan. 24
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| Settlement date: | Feb. 15
|
| Stock symbol: | TSX Venture: HRC
|
| Stock price: | C$0.445 at close Jan. 21
|
| Market capitalization: | C$35.31 million
|
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