Proceeds earmarked for development of West Red Lake properties
By Jennifer Chiou
New York, Jan. 11 - Hy Lake Gold Inc. said it settled a C$1.96 million private placement of units comprised of one flow-through common share and a warrant.
The company sold 3,569,953 units at C$0.55 per unit in two non-brokered tranches settling on Dec. 23 and Dec. 31.
The company added that the flow-through private placement included the subscription of 1,818,181 units by MineralFields Group and 864,000 units by Pavilion Flow-Through LP (2010).
Each whole warrant is exercisable at C$0.75 for the first year and then at C$1.00 for the subsequent 12-month period. The strike prices represent premiums of 41.51% and 88.68%, respectively, over the closing share price of C$0.53 on Jan. 10.
Proceeds of the financing will be used for the continued exploration and development of Hy Lake's West Red Lake properties and to assist the company in qualifying the common shares for listing on the TSX Venture Exchange.
"We are pleased to continue our relationship with MineralFields Group and Pavilion Funds," Hy Lake president and chief executive officer Robert Seitz said in a news release.
"We have now funded our previously announced early 2011 exploration programs, and Hy Lake Gold looks forward to working with our supporting fund groups as we continue to explore and develop our properties in the Red Lake Camp.
Toronto-based Hy Lake Gold is a junior gold mining and exploration company.
| Issuer: | Hy Lake Gold Inc.
|
| Issue: | Units of one flow-through common share and a warrant
|
| Amount: | C$1,963,474.15
|
| Units: | 3,569,953
|
| Price: | C$0.55
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 24 months
|
| Warrant strike price: | C$0.75 for first year; C$1.00 for second year
|
| Investors: | MineralFields Group (for C$1 million); Pavilion Flow-Through LP (2010) (for C$475,200)
|
| Settlement dates: | Dec. 23 and Dec. 31
|
| Stock symbol: | CNSX: HYL
|
| Stock price: | C$0.53 at close Jan. 10
|
| Market capitalization: | C$21.21 million
|
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