By Devika Patel
Knoxville, Tenn., Dec. 5 - American Creek Resources Ltd. announced that it plans to raise C$6.02 million in a private placement of units and stock.
The company will sell up to C$3.5 million in flow-through shares at C$0.55 per share and up to C$2.52 million in units at C$0.45 apiece. Each unit will consist of one common share and one non-transferable warrant, with each warrant exercisable at C$0.80 for one year.
Union Securities Ltd. will be the lead agent of a syndicate of dealers, which has a greenshoe for 15% in shares or units. The company will pay Union a 7% cash commission and issue non-transferable compensation options exercisable for a number of units equal to 7% of the securities sold at C$0.45 per unit for one year.
The deal will settle on Dec. 31.
Based in Raymond, Alta., American Creek is an aggressive junior mineral exploration company focused on the acquisition, exploration and development of gold and silver deposits.
| Issuer: | American Creek Resources Ltd.
|
| Issue: | Units of one common share and one non-transferable warrant; flow-through shares
|
| Amount: | C$6.02 million (maximum)
|
| Greenshoe: | 15%
|
| Agent: | Union Securities Ltd. (lead)
|
| Fees: | 7% in cash and options
|
| Pricing date: | Dec. 5
|
| Settlement date: | Dec. 31
|
| Stock symbol: | TSX Venture: AMK
|
| Stock price: | C$0.52 at close Dec. 4
|
|
|
| Units
|
| Amount: | C$2.52 million (maximum)
|
| Price: | C$0.45
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.80
|
|
|
| Flow-through shares
|
| Amount: | C$3.5 million (maximum)
|
| Price: | C$0.55
|
| Warrants: | No
|
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