Primary Capital will conduct commercially reasonable efforts deal
By Marisa Wong
Madison, Wis., Feb. 13 - Nevada Sunrise Gold Corp. said it will raise C$1.5 million through a private placement of units with Primary Capital Inc. as the agent.
The company will sell on a commercially reasonable efforts agency basis 12.5 million units at a price of C$0.12 per unit. Each unit will consist of one common share and half of a common share purchase warrant.
Each whole warrant will entitle the holder to purchase one common share at an exercise price of C$0.20 per share for 24 months from the date of issuance. The strike price represents a 33.3% premium to the closing share price on Feb. 10, which was C$0.15.
In the event that the company's shares trade at a daily volume-weighted average price of greater than C$0.32 per share for a period of 20 consecutive days at any time after four months and one day from closing, the company may accelerate the expiration of the warrants. The warrants will then expire 30 days after notice of the acceleration is given.
There is an over-allotment option for 4.2 million units, or proceeds of C$500,000.
Proceeds will be used to fund exploration of the company's North American precious metals properties and for general working capital.
Nevada Sunrise is a gold exploration company based in Vancouver, B.C.
| Issuer: | Nevada Sunrise Gold Corp.
|
| Issue: | Units of one common share and half a warrant
|
| Amount: | C$1.5 million
|
| Greenshoe: | C$500,000, or 4.2 million units
|
| Units: | 12.5 million
|
| Price: | C$0.12
|
| Warrants: | For 6.25 million shares
|
| Warrant expiration: | 24 months unless accelerated
|
| Warrant strike price: | C$0.20
|
| Agent: | Primary Capital Inc.
|
| Announcement date: | Feb. 13
|
| Stock symbol: | TSX Venture: NEV
|
| Stock price: | C$0.15 at close Feb. 10
|
| Market capitalization: | C$8.54 million
|
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