Investor Chengdu Tianqi Industry signs up for about 54% of offering
By Susanna Moon
Chicago, Nov. 4 - Nemaska Exploration Inc. said it arranged a private placement of stock for C$8.75 million with a syndicate of agents led by Dundee Securities Ltd. and including Industrial Alliance Securities Inc. and Fraser Mackenzie Ltd. There is a 48-hour over-allotment option for 15% more shares.
The company will sell 21,875,000 common shares at C$0.40 per share, which was the company's closing price on Nov. 3.
Settlement is expected to occur on Nov. 30.
As part of the offering, Chengdu Tianqi Industry Group Co., Ltd. said it will subscribe for a number of shares that will represent, together with the shares it already indirectly owns, about 19.9% of the issued shares as of closing.
Tianqi currently owns 7,370,468 shares, or about 9.95% of the outstanding shares, and 4,963,050 share purchase warrants through an absolute controlled subsidiary, TQC Group (Netherlands) Cooperatief UA.
That means that Tianqi would be required to subscribe for about 54% of the offering, not including the greenshoe.
"With this financing, we remain on track to commence production in 2013 and we are continuing advanced discussions to supply spodumene concentrate to multiple suppliers," Guy Bourassa, president and chief executive officier of Nemaska Exploration, said in a press release.
"At the same time, we are also advancing discussions on becoming more vertically integrated by supplying both lithium carbonate and lithium hydroxide products to the market."
Proceeds will be used to complete the definitive feasibility study and obtain the required permits for the Whabouchi lithium deposit, complete pilot plant hydrometallurgical tests as well as for general corporate purposes.
Nemaska is a mineral exploration company based in Quebec City.
| Issuer: | Nemaska Exploration Inc.
|
| Issue: | Common shares
|
| Amount: | C$8.75 million
|
| Shares: | 21,875,000
|
| Price: | C$0.40
|
| Investor: | Chengdu Tianqi Industry Group Co., Ltd. (for about 54% of offering, excluding greenshoe)
|
| Agents: | Dundee Securities Ltd. (lead), Industrial Alliance Securities Inc. and Fraser Mackenzie Ltd.
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 30
|
| Stock symbol: | Canada: NMX
|
| Stock price: | C$0.40 at close Nov. 3
|
| Market capitalization: | C$28.88 million
|
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