Capital Markets and underwriting syndicate help finance CMD Gold Mine
By Devika Patel
Knoxville, Tenn., March 12 - Lachlan Star Ltd. said it has restructured a C$17.56 million private placement to sell special warrants instead of common shares. The deal priced March 8.
The warrants will be sold through a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Dundee Securities Ltd., Raymond James Ltd. and GMP Securities LP.
The company will now sell 10,975,000 special warrants at C$1.60 per warrant on a bought-deal basis. The price per warrant reflects a 4.19% discount to the March 7 closing share price of C$1.67.
Each warrant will be exchangeable for one ordinary share at no additional cost.
Settlement is expected April 3.
Proceeds will be used for development of the CMD Gold Mine and general working capital.
Lachlan Star is a gold and copper mining company based in Perth, Australia.
| Issuer: | Lachlan Star Ltd.
|
| Issue: | Special warrants
|
| Amount: | C$17.56 million
|
| Shares: | 10,975,000
|
| Price: | C$1.60
|
| Warrants: | No
|
| Agents: | Macquarie Capital Markets Canada Ltd. (lead), Dundee Securities Ltd., Raymond James Ltd. and GMP Securities LP
|
| Pricing date: | March 8
|
| Revised: | March 12
|
| Settlement date: | April 3
|
| Stock symbol: | Toronto: LSA
|
| Stock price: | C$1.67 at close March 7
|
| Market capitalization: | C$131.89 million
|
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