Brokered offering raises funds to explore company's West Mali property
By Devika Patel
Knoxville, Tenn., March 25 - Merrex Gold Inc. said it has arranged a C$10 million private placement of units with lead agent Casimir Capital LP and a syndicate that includes Raymond James Ltd. There is a C$1.5 million greenshoe.
The company will sell 20 million units of one common share and one half-share warrant at C$0.50 each. The whole warrants are each exercisable at C$0.75 for 18 months. The strike price represents a 31.58% premium to C$0.57, the closing share price on March 24.
Settlement is expected March 31.
Proceeds will be used for exploration work on the company's property in West Mali and working capital.
Based in Halifax, N.S., Merrex is a mineral resource exploration company exploring for gold, zinc and nickel.
| Issuer: | Merrex Gold Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$10 million
|
| Greenshoe: | C$1.5 million
|
| Units: | 20 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.75
|
| Agents: | Casimir Capital LP (lead), Raymond James Ltd.
|
| Pricing date: | March 25
|
| Settlement date: | March 31
|
| Stock symbol: | TSX Venture: MXI
|
| Stock price: | C$0.57 at close March 24
|
| Market capitalization: | C$50.13 million
|
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