Company says proceeds are earmarked for exploration, working capital
By Devika Pate l
Knoxville, Tenn., March 4 - Lions Gate Metals Inc. said it settled the initial tranche of a non-brokered private placement of units. The deal priced as a C$5 million units offering with a C$1 million greenshoe on Feb. 9 and the company took in C$4.53 million in this closing, which also included flow-through stock.
The company is selling units at C$0.80 apiece and shares at C$0.95 per share. It sold 1,052,632 shares and 4,414,000 units in this tranche.
Each unit consists of one common share and one half-share warrant. Each full two-year warrant will be exercisable at C$1.20 in the first year and at C$1.50 in the second.
The strike prices are 46.34% and 82.93% premiums to the Feb. 8 closing share price of C$0.82. The price per flow-through share is a 15.85% premium to that price.
M Partners Investment Bank is marketing a portion of the offering.
Proceeds will be used for exploration and working capital.
Based in Vancouver, B.C., Lions Gate owns substantial copper and molybdenum projects located in British Columbia.
| Issuer: | Lions Gate Metals Inc.
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| Issue: | Units of one common share and one half-share warrant, flow-through common shares
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| Amount: | C$5 million
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| Greenshoe: | C$1 million
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| Warrants: | One half-share warrant per unit
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| Warrant expiration | Two years
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| Warrant strike price: | C$1.20 in the first year, C$1.50 in the second
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| Agent: | Non-brokered
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| Pricing date: | Feb. 9
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| Settlement date: | March 4 (for C$4,531,200)
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| Stock symbol: | TSX Venture: LGM
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| Stock price: | C$0.82 at close Feb. 8
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| Market capitalization: | C$12.34 million
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| Units
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| Price: | C$0.80
|
|
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| Shares
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| Price: | C$0.95
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