By Sheri Kasprzak
New York, Feb. 26 - Mena Resources Inc. closed a C$72,075,330 private placement.
The company sold 31,337,100 subscription receipts at C$2.30 each.
Each receipt is exchangeable for units of one share and one half-share warrant once the company completes its acquisition of Rusoro Mining Ltd. The whole warrants associated with the units are exercisable at C$3.09 each for five years.
The deal was placed through a syndicate of agents led by Canaccord Adams Inc. and including Haywood Securities Inc. and Pacific International Securities Inc.
Under the terms of the acquisition, one share and one warrant of Rusoro will be issued for every 1.7 shares of Mena outstanding. The Rusoro warrants are exercisable at C$5.25 each for five years.
Proceeds from the placement will be used for the development of Rusoro's properties. The rest will be used for working capital.
Vancouver, B.C.-based 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$72,075,330
|
| Receipts: | 31,337,100
|
| Price: | C$2.30
|
| Warrants: | One half-share warrant per unit upon exchange
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$3.09
|
| Placement agents: | Canaccord Adams Inc. (lead), Haywood Securities Inc., Pacific International Securities Inc.
|
| Settlement date: | Feb. 26
|
| Stock symbol: | TSX Venture: MEA
|
| Stock price: | C$1.85 at close Feb. 23
|
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