By Devika Patel
Knoxville, Tenn., April 18 - Lero Gold Corp. said it has entered into an agreement with Canaccord Adams Ltd. for a C$40 million private placement of shares.
The company will sell 47,058,824 common shares on a bought-deal basis at C$0.85 each.
Canaccord will have a 15% greenshoe option and may also increase the deal size by another C$20 million.
Proceeds will be used to fund a C$25 million loan Lero will give to European Minerals Corp. in connection with European Minerals' acquisition of Lero's outstanding shares, which was announced Friday, and for exploration, drilling, working capital and potential acquisitions.
Vancouver, B.C.-based Lero, formerly ELE Capital Corp., is a new base and precious metals exploration company.
| Issuer: | Lero Gold Corp.
|
| Issue: | Common shares
|
| Amount: | C$40 million
|
| Greenshoe: | For 15%
|
| Shares: | 47,058,824
|
| Price: | C$0.85
|
| Warrants: | No
|
| Agent: | Canaccord Adams Ltd.
|
| Pricing date: | April 18
|
| Stock symbol: | TSX Venture: LER
|
| Stock price: | C$0.94 at close April 17
|
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