Proceeds to speed exploration at rare earth mine in Tanzania
New York, July 5 - Montero Mining and Exploration Ltd. said it plans to raise C$5 million through a non-brokered private placement of units.
The company intends to sell up to 8,333,333 units at a price of C$0.60 each.
Each unit will be made up of one common share and half of a common share purchase warrant exercisable at C$0.80 for 24 months from issuance.
Montero will be able to force conversion of the warrants after four months if its shares trade at C$1.20 or higher for 20 consecutive trading days.
As part of the sale, Montero will pay a finder's fee of 7% in cash or units plus warrants for 7% of the units placed by the finder.
Montero said proceeds will be used to fund continued exploration at its Wigu Hill Rare Earth Project in Tanzania and for general working capital.
"I am pleased to announce this placement as it will allow the company to fast track the development and production of rare earths from our Wigu Hill project in Tanzania," said Tony Harwood, the company's president and chief executive officer, in a news release.
Montero is a Toronto-based mineral exploration and development company.
| Issuer: | Montero Mining and Exploration Ltd.
|
| Issue: | Units of stock and 0.5 warrant
|
| Amount: | C$5 million
|
| Units: | 8,333,333
|
| Price: | C$0.60
|
| Warrants: | 0.5 per unit
|
| Warrant expiration: | 2 years
|
| Warrant strike price: | C$0.80
|
| Agent: | Non-brokered
|
| Pricing date: | July 5
|
| Settlement: | July 20
|
| Stock symbol: | TSX Venture: MON
|
| Stock price: | C$0.66 at close on July 4
|
| Market capitalization: | C$29.2 million
|
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