By Sheri Kasprzak
New York, Jan. 31 - Mena Resources Inc. priced a C$50.83 million private placement.
The deal includes up to 22.1 million subscription receipts at C$2.30 each.
Each receipt is exchangeable for units of Mena of one share and one half-share warrant with each whole warrant exercisable at a price to be determined but no less than C$2.30 each. The receipts will be exchanged once Rusoro Mining Ltd. completes its acquisition of Mena.
A syndicate of agents led by Canaccord Adams Ltd. and including Haywood Securities Inc. and Pacific International Securities Inc. has a greenshoe for up to 11.05 million additional receipts.
Under the acquisition terms, one share of Rusoro and one warrant of Rusoro will be issued for every 1.7 outstanding shares of Mena and Mena warrants.
Proceeds from the placement will be used to develop existing Rusoro properties. The rest will be used for working capital.
Located in Vancouver, B.C., Mena is a mineral exploration company.
| Issuer: | Mena Resources Inc.
|
| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant
|
| Amount: | C$50.83 million
|
| Receipts: | 22.1 million
|
| Greenshoe: | For 11.05 million subscription receipts
|
| Price: | C$2.30
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant strike price: | TBD, but no less than C$2.30
|
| Placement agents: | Canaccord Adams Ltd. (lead), Haywood Securities Inc., Pacific International Securities Inc.
|
| Pricing date: | Jan. 31
|
| Stock symbol: | TSX Venture: MEA
|
| Stock price: | C$2.05 at close Jan. 30
|
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