Proceeds of non-brokered deal slated for exploration, working capital
By Devika Patel
Knoxville, Tenn., March 11 - Lions Gate Metals Inc. said it settled the final 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 a March 4 tranche, which also included flow-through stock, and C$1.5 million in Friday's tranche for a total of C$6.03 million.
The company sold 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 the first tranche and 1.87 million units in the second.
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 marketed 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.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$6,027,200
|
| Agent: | Non-brokered
|
| Pricing date: | Feb. 9
|
| Settlement dates: | March 4 (for C$4,531,200), March 11 (for C$1,496,000)
|
| Stock symbol: | TSX Venture: LGM
|
| Stock price: | C$0.82 at close Feb. 8
|
| Market capitalization: | C$13.96 million
|
|
|
| Units
|
| Amount: | C$5,027,200
|
| Units: | 6,284,000
|
| Price: | C$0.80
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration | Two years
|
| Warrant strike prices: | C$1.20 in the first year, C$1.50 in the second
|
|
|
| Shares
|
| Amount: | C$1 million
|
| Shares: | 1,052,632
|
| Price: | C$0.95
|
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