Deal with greenshoe funds exploration, development and working capital
By Devika Patel
Knoxville, Tenn., May 7 – NioGold Mining Corp. said it will conduct a C$3.12 million private placement of units and stock. The units portion of the sale has a 50% greenshoe. Cormark Securities Inc. is the agent.
The company will sell 2.65 million units of one common share and a half-share warrant at C$0.38 per unit and 4,226,000 flow-through common shares at C$0.50 apiece on a bought-deal basis.
Each whole warrant will be exercisable at C$0.50 for two years.
The price per share and warrant strike price are a 28.21% premium to the May 6 closing share price of C$0.39.
Settlement is expected May 28.
Proceeds will be used for exploration, development and general corporate and working capital purposes.
Based in Vancouver, B.C., NioGold is a gold exploration company.
| Issuer: | NioGold Mining Corp.
|
| Issue: | Units of one common share and a half-share warrant, flow-through common shares
|
| Amount: | C$3.12 million
|
| Agent: | Cormark Securities Inc.
|
| Pricing date: | May 7
|
| Settlement date: | May 28
|
| Stock symbol: | TSX Venture: NOX
|
| Stock price: | C$0.39 at close May 6
|
| Market capitalization: | C$47.14 million
|
|
|
| Units
|
| Amount: | C$1,007,000
|
| Greenshoe: | C$503,500, or 1,325,000 units
|
| Units: | 2.65 million
|
| Price: | C$0.38
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.50
|
|
|
| Stock
|
| Amount: | C$2,113,000
|
| Shares: | 4,226,000
|
| Price: | C$0.50
|
| Warrants: | No
|
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