By Sheri Kasprzak
New York, Oct. 18 - Nevsun Resources Ltd. priced a C$25.05 million private placement.
The offering includes up to 8.35 million units at C$3.00 apiece.
The deal is being placed through a syndicate of underwriters led by Haywood Securities Inc. and Canaccord Capital Corp. The syndicate has a greenshoe for up to 1.65 million additional units.
The units consist of one share and one half-share warrant. Each whole warrant is exercisable at C$4.00 for three years. The expiry of the warrants may be accelerated to 30 days if the company's stock trades above C$5.00 for more than 10 consecutive trading days.
The deal is scheduled to close Oct. 31.
Proceeds will be used for pre-production on the company's Bisha project in Eritrea and for general corporate purposes.
Based in Vancouver, B.C., Nevsun is a gold, copper and zinc exploration company.
| Issuer: | Nevsun Resources Ltd.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$25.05 million
|
| Units: | 8.35 million
|
| Greenshoe: | For 1.65 million units
|
| Price: | C$3.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$4.00
|
| Underwriters: | Haywood Securities Inc. (lead), Canaccord Capital Corp. (lead)
|
| Pricing date: | Oct. 18
|
| Settlement date: | Oct. 31
|
| Stock symbol: | Toronto: NSU
|
| Stock price: | C$3.08 at close Oct. 17
|
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