By Devika Patel
Knoxville, Tenn., May 7 - Lero Gold Corp. said agent Canaccord Adams Ltd. exercised its greenshoe option, completing a private placement of shares for C$66 million. The deal priced for C$40 million on April 18 with a 15% greenshoe and an additional option to increase the deal by C$20 million. It was increased to C$60 million on April 29.
The company sold 77,647,058 common shares at C$0.85 each. Of the shares sold, 7,058,823 were from the C$6 million greenshoe. The company originally planned to sell 47,058,824 common shares at that price on a bought-deal basis.
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$65,999,999.30
|
| Shares: | 77,647,058
|
| Price: | C$0.85
|
| Warrants: | No
|
| Agents: | Canaccord Adams Ltd.
|
| Pricing date: | April 18
|
| Upsized: | April 29
|
| Settlement date: | May 7
|
| Stock symbol: | TSX Venture: LER
|
| Stock price: | C$0.94 at close April 17
|
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