By Angela McDaniels
Tacoma, Wash., May 26 - Malbex Resources Inc. plans to raise C$8 million to C$12 million in a private placement of subscription receipts, according to a company news release.
Thomas Weisel Partners Canada Inc. is the lead agent.
Each subscription receipt will automatically be exchanged for one unit of Malbex, and each unit will consist of one Malbex common share and half of a warrant.
The subscription receipts will be exchanged for units immediately prior to the amalgamation of Malbex and Arapaho Capital Corp. Arapaho will acquire Malbex's outstanding stock on the basis of one Arapaho common share for every 1.5 Malbex common shares in a reverse takeover.
The proceeds from the private placement will be used for exploration and general corporate purposes.
If the amalgamation is not completed within six months of the private placement, a portion of the subscription receipts of each holder will be exchanged for units. Holders will then have the option to have their remaining subscription receipts redeemed for the purchase price or to exchange them for units.
Malbex Resources is a private gold exploration company based in Vancouver, B.C.
| Issuer: | Malbex Resources Inc.
|
| Issue: | Subscription receipts exchangeable for units of one common share and half a warrant
|
| Amount: | C$8 million to C$12 million
|
| Warrants: | One-half of a warrant per unit
|
| Agent: | Thomas Weisel Partners Canada Inc. (lead)
|
| Pricing date: | May 26
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