Pilot Gold agrees to purchase C$750,000 of units at C$0.12 apiece
By Jennifer Chiou
New York, Feb. 15 - Nevada Sunrise Gold Corp. announced that it has entered into an agreement with Pilot Gold Inc., under which Pilot will purchase up to 6.25 million units at C$0.12 each for proceeds of up to C$750,000 on a non-brokered basis.
On Feb. 13, the company announced that it would raise C$1.5 million through a private placement of units with Primary Capital Inc. as the agent. The 12.5 million units in that transaction will be sold on a commercially reasonable-efforts basis, also at a price of C$0.12 per unit. There is an over-allotment option for 4.2 million units, or proceeds of C$500,000.
Each unit consists 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.
Pilot Gold's participation in the non-brokered portion of the placement will be capped at 9.9% of its outstanding shares on a partially diluted basis.
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
|
| Total amount: | C$2.25 million (C$1.5 million brokered; C$750,000 non-brokered)
|
| Greenshoe: | C$500,000, or 4.2 million units
|
| Total units: | 18.75 million (12.5 million brokered; 6.25 million non-brokered)
|
| Price: | C$0.12
|
| Warrants: | For 9.375 million shares
|
| Warrant expiration: | 24 months unless accelerated
|
| Warrant strike price: | C$0.20
|
| Agent: | Primary Capital Inc. (for C$1.5 million)
|
| Announcement date: | Feb. 13
|
| Upsized: | Feb. 15
|
| Stock symbol: | TSX Venture: NEV
|
| Stock price: | C$0.15 at close Feb. 10
|
| Market capitalization: | C$8.54 million
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