Proceeds will help explore, develop kimberlite-hosted diamond deposits
By Devika Patel
Knoxville, Tenn., Dec. 23 - Metalex Ventures Ltd. said it plans a private placement of units and stock. The offering priced for C$7.08 million on Dec. 2 and raised C$7.3 million.
The company sold 1,821,500 units of one common share and one half-share warrant at C$0.70 apiece for C$1.28 million. Each whole warrant is exercisable at C$0.90 for two years.
The company also sold 6,699,667 flow-through units of one flow-through common share and a half-share warrant at C$0.90 apiece for C$6.03 million. Each whole flow-through warrant is exercisable at C$1.00 for two years.
The warrant strike prices reflect 21.62% and 35.14% premiums to the Dec. 1 closing share price of C$0.74.
The deal was conducted by a syndicate of agents led by GMP Securities LP and including Pope & Co. Ltd.
Proceeds will be used for exploration and development of the company's kimberlite-hosted diamond deposits and other mineral projects and for general, administrative and working capital purposes.
Based in Kelowna, B.C., Metalex is a mineral exploration company. The company's long-term growth strategy is to generate substantial capital growth by developing kimberlitehosted diamond deposits at Kyle Lake, Angola, Wawa and other areas.
| Issuer: | Metalex Ventures Ltd.
|
| Issue: | Flow-through units of one flow-through common share and a half-share warrant, units of one common share and one half-share warrant
|
| Amount: | C$7,304,750
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Agent: | GMP Securities LP (lead), Pope & Co. Ltd.
|
| Pricing date: | Dec. 2
|
| Settlement date: | Dec. 23
|
| Stock symbol: | TSX Venture: MTX
|
| Stock price: | C$0.76 at close Dec. 1
|
| Market capitalization: | C$30.66 million
|
|
|
| Units
|
| Amount: | C$1,275,050
|
| Units: | 1,821,500
|
| Price: | C$0.70
|
| Warrant strike price: | C$0.90
|
|
|
| Flow-through units
|
| Amount: | C$6,029,700
|
| Units: | 6,699,667
|
| Price: | C$0.90
|
| Warrant strike price: | C$1.00
|
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