Non-brokered deal finances exploration of company's property portfolio
By Devika Patel
Knoxville, Tenn., Nov. 16 - Mirasol Resources Ltd. said it has arranged a non-brokered private placement of units.
The company will sell 3 million units at C$3.10 apiece for C$9.3 million. Each unit consists of one common share and one half-share warrant. Each whole one-year warrant will be exercisable at C$4.00. The strike price reflects a 14.94% premium to the Nov. 15 closing share price of C$3.48.
"We've had a fair amount of anticipation building on two fronts," Mary L. Little, president and chief executive officer, told Prospect News.
The first front is the discovery at the Virginia Silver Project in Argentina, she said, which recently received the required environmental permits, allowing Mirasol to start its drilling program. The second has to do with new data being released from its Joaquin Project in the Patagonia region of the country.
"We had set aside some of the Patagonia projects during the downturn, "she explained. With the economy's recovery, "we're going back to ramp up and pick up where we left off."
"It's our biggest exploration program ever," she said of the upcoming year.
Little said the "stars were aligning" and that "it seemed like a good opportunity and the time was right" to do a financing.
She also noted that she had recently returned from a trip through Europe and Toronto, in which she met with potential institutional investors. "The trip was good for visibility," she said and has resulted in "significant interest" in the financing.
Though she noted that it was "too early to say how the distribution would be," she expected the financing to do well, with a closing expected sometime in December.
Proceeds will be used for exploration of Mirasol's property portfolio, including generative exploration programs in northern Chile and in Argentina, as well as for general working capital.
Mirasol is a precious metals exploration and development company based in Vancouver, B.C.
Stephanie N. Rotondo contributed to this article
| Issuer: | Mirasol Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$9.3 million
|
| Units: | 3 million
|
| Price: | C$3.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$4.00
|
| Agent: | Non-brokered
|
| Pricing date: | Nov. 16
|
| Stock symbol: | TSX Venture: MRZ
|
| Stock price: | C$3.48 at close Nov. 15
|
| Market capitalization: | C$113.43 million
|
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