By Devika Patel
Knoxville, Tenn., April 16 - Mill City Gold Corp. said it will conduct a C$1.5 million non-brokered private placement of units.
The company will sell 7.5 million units at C$0.20 apiece. Of those units, 3.75 million will consist of one flow-through common share and one half-share warrant and the remaining 3.75 million units will consist of one common share and one whole warrant.
Each whole warrant is exercisable at C$0.40 for two years. The warrants may expire sooner if the company's common shares close at C$0.60 or higher for 20 consecutive trading days. In that case, the warrants will expire on the 20th day after the company notifies holders.
Proceeds will be used to fund the company's ongoing exploration program in the McFaulds Lake Area and for general corporate purposes.
Pinetree Capital Ltd., Northfield Capital Corp. and William O. Ballard, president of Orion Capital Inc., have agreed to purchase a substantial portion of the units.
Mill City, based in Calgary, Alta., is a gold exploration company.
| Issuer: | Mill City Gold Corp.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, units of one common share and one whole warrant
|
| Amount: | C$1.5 million
|
| Units: | 7.5 million
|
| Price: | C$0.20
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Agent: | Non-brokered
|
| Investors: | Pinetree Capital Ltd., Northfield Capital Corp. and William O. Ballard
|
| Pricing date: | April 16
|
| Stock symbol: | TSX Venture: MC
|
| Stock price: | C$0.15 at close on April 15
|
|
|
| Flow-through units
|
| Amount: | C$750,000
|
| Units: | 3.75 million
|
| Warrants: | One half-share warrant per unit
|
|
|
| Units
|
| Amount: | C$750,000
|
| Units: | 3.75 million
|
| Warrants: | One warrant per unit
|
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