By Devika Patel
Knoxville, Tenn., Nov. 28 - Keegan Resources Inc. said it has completed a C$13.53 million private placement of units. The deal priced on Nov. 5 for C$12.3 million with a C$1.23 million greenshoe, which was fully exercised.
Keegan sold 3.3 million units at C$4.10 apiece. Of those, 300,000 units were part of the greenshoe. Each unit is comprised of one common share and one half-share warrant. Each whole transferable warrant is exercisable at C$5.25 for 18 months.
The warrants may expire sooner if the company's shares trade at C$6.00 or higher for 20 consecutive trading days. In that case, the warrants will expire 30 days after Keegan notifies holders.
The deal was conducted by a syndicate of underwriters led by Dundee Securities Corp. and including Cormark Securities Inc. The underwriters received a 5% cash commission plus broker warrants equal to 10% of the number of units sold. The broker warrants will be exercisable at C$4.25 for18 months.
The units will have a four-month hold period.
Proceeds will be used to drill and advance the company's Esaase and Asumura gold properties in Ghana.
Keegan is a Vancouver, B.C.-based gold exploration and development company.
| Issuer: | Keegan Resources Inc.
|
| Issue: | Units of one share and one half-share transferable warrant
|
| Amount: | C$13.53 million, including C$1.23 million greenshoe
|
| Units: | 3.3 million, including 300,000 unit greenshoe
|
| Price: | C$4.10
|
| Warrants: | One half warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$5.25
|
| Agent: | Dundee Securities Corp., Cormark Securities Inc.
|
| Fees: | 5% in cash, 10% in broker warrants
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 28
|
| Stock symbol: | TSX Venture: KGN
|
| Stock price: | C$4.25 at close Nov. 2
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
