Deal offers two types of units, funds exploration and working capital
By Devika Patel
Knoxville, Tenn., July 7 - Newton Gold Corp. said it plans a C$2 million non-brokered private placement of units.
The company will sell 2.5 million units of one common share and one warrant at C$0.20 per unit and 6 million flow-through units of one flow-through common share and one warrant at C$0.25 per unit.
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.
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$2 million
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Agent: | Non-brokered
|
| Pricing date: | July 7
|
| Stock symbol: | TSX Venture: NWG
|
| Stock price: | C$0.18 at close July 6
|
| Market capitalization: | C$3.71 million
|
|
|
| Units
|
| Amount: | C$500,000
|
| Units: | 2.5 million
|
| Price: | C$0.20
|
| Warrant strike prices: | C$0.30 in first year, C$0.40 in second year
|
|
|
| Flow-through units
|
| Amount: | C$1.5 million
|
| Units: | 6 million
|
| Price: | C$0.25
|
| Warrant strike prices: | C$0.40 in first year, C$0.50 in second year
|
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