By Devika Patel
Knoxville, Tenn., Dec. 11 - Magellan Minerals Ltd. said it plans a C$20 million private placement of units and subscription receipts.
The company will sell 17.14 million units of one common share and one half-share warrant at C$0.70 per unit and 11.43 million subscription receipts at C$0.70 apiece.
Each whole warrant will be exercisable at C$1.00 for two years. Each subscription receipt will automatically convert into one unit upon completion of the company's planned acquisition of the Creporizinho gold mine in Brazil.
The deal will be conducted by co-lead agents Toll Cross Securities Inc. and Dundee Securities Corp., along with Haywood Securities Inc.
Settlement is expected Dec. 22.
Proceeds will be used for exploration and general working capital, and to acquire the Creporizinho gold mine.
The gold and bauxite explorer is based in Vancouver, B.C.
| Issuer: | Magellan Minerals Ltd.
|
| Issue: | Units of one common share and one half-share warrant, subscription receipts
|
| Amount: | C$20 million
|
| Price: | C$0.70
|
| Agents: | Toll Cross Securities Inc. and Dundee Securities Corp. (co-leads), Haywood Securities Inc.
|
| Pricing date: | Dec. 10
|
| Settlement date: | Dec. 22
|
| Stock symbol: | TSX Venture: MNM
|
| Stock price: | C$0.89 at close Dec. 10
|
| Market capitalization: | C$27.6 million
|
|
|
| Units
|
| Amount: | C$12 million
|
| Units: | 17.14 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
|
|
| Subscription receipts
|
| Amount: | C$8 million
|
| Receipts: | 11.43 million
|
| Warrants: | No
|
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