Deal offers two types of unit, funds exploration and working capital
By Devika Patel
Knoxville, Tenn., Nov. 28 - Newton Gold Corp. said it raised C$160,000 in the fourth and final tranche of a C$1.66 million non-brokered private placement of units on Nov. 25. The deal priced for C$2 million on July 7, and Newton Gold raised C$800,000 on July 21; it raised C$325,000 on Sept. 14 and C$371,400 on Nov. 18.
The company sold a total of 2.29 million units of one common share and one warrant at C$0.20 per unit and 4,793,600 flow-through units of one flow-through common share and one warrant at C$0.25 per unit.
In the first tranche, Newton Gold sold 3.2 million flow-through units to the MineralFields Group. It sold 880,000 flow-through units and 525,000 units in the second tranche. The company sold 473,600 flow-through units and 1,265,000 units in the third tranche and 240,000 flow-through units and 500,000 units in the final tranche.
Each whole warrant is exercisable for two years.
The unit warrants will be exercisable at C$0.30 in the first year and at C$0.40 in the second year. The strike prices are 66.67% and 122.22% premiums to the July 6 closing share price of C$0.18.
The flow-through unit warrants will be exercisable at C$0.40 in the first year and at C$0.50 in the second year. The strike prices are 122.22% and 177.78% premiums to the July 6 closing price.
The company paid finder's fees to Limited Market Dealer Inc., Leede Financial Markets Inc., Wolverton Securities Ltd., EMD Financial Inc. and CGE Resources Quebec 2011 LP.
Proceeds will be used for exploration, general working capital and corporate purposes.
Based in Vancouver, B.C., Newton is a gold explorer.
| Issuer: | Newton Gold Corp.
|
| Issue: | Units of one common share and one warrant, flow-through units of one flow-through common share and one warrant
|
| Amount: | C$1,656,400
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Agent: | Non-brokered
|
| Investor: | MineralFields Group (for C$800,000)
|
| Pricing date: | July 7
|
| Settlement dates: | July 21 (for C$800,000), Sept. 14 (for C$325,000), Nov. 18 (for C$371,400), Nov. 25 (for C$160,000)
|
| Stock symbol: | TSX Venture: NWG
|
| Stock price: | C$0.18 at close July 6
|
| Market capitalization: | C$4.95 million
|
|
|
| Units
|
| Amount: | C$458,000
|
| Units: | 2.29 million
|
| Price: | C$0.20
|
| Warrant strike prices: | C$0.30 in the first year, C$0.40 in the second year
|
|
|
| Flow-through units
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| Amount: | C$1,198,400
|
| Units: | 4,793,600
|
| Price: | C$0.25
|
| Warrant strike prices: | C$0.40 in the first year, C$0.50 in the second year
|
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