Deal to fund exploration on Ana Paula project and Guerrero Gold Belt
By Toni Weeks
San Diego, Feb. 24 - Newstrike Capital, Inc. said it will conduct a private placement of stock. The company plans to raise C$24.8 million.
The company will sell 8 million common shares on a bought-deal basis at C$3.10 apiece. The price per share represents a 3.73% discount to the Feb. 23 closing share price of C$3.22.
The deal will be conducted by a syndicate of underwriters led by Cormark Securities Inc. and including GMP Securities LP, Scotia Capital Inc., Euro Pacific Canada Inc., Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.
Settlement is expected March 20.
Proceeds will be used for exploration of the company's Ana Paula project and within the Guerrero Gold Belt as well as for general corporate purposes and working capital.
Vancouver, B.C.-based Newstrike explores gold and silver properties in Mexico.
| Issuer: | Newstrike Capital, Inc.
|
| Issue: | Common shares
|
| Amount: | C$24.8 million
|
| Shares: | 8 million
|
| Price: | C$3.10
|
| Warrants: | No
|
| Underwriters: | Cormark Securities Inc. (lead), GMP Securities LP, Scotia Capital Inc., Euro Pacific Canada Inc., Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd.
|
| Pricing date: | Feb. 24
|
| Settlement date: | March 20
|
| Stock symbol: | TSX Venture: NES
|
| Stock price: | C$3.22 at close Feb. 23
|
| Market capitalization: | C$329.96 million
|
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