By Devika Patel
Knoxville, Tenn., Sept. 7 - Norex Exploration Services Inc. announced that it has entered into an agreement for a C$15 million private placement of units. The deal has a greenshoe of an additional C$1,500,450.
The company intends to sell up to 14,286,000 units at C$1.05 apiece. Each unit consists of one common share and one half share warrant. Each whole warrant is exercisable at C$1.60 for 18 months. There is a greenshoe for up to 5,000,000 units, which must be exercised within five business days after closing and closed within 10 business days after closing.
The deal is being placed by a syndicate of agents led by Westwind Partners Inc. and including BMO Nesbitt Burns Inc. and Blackmont Capital Inc.
Proceeds will be used to fund the company's previously announced acquisition of South American Exploration, LLC. The deal is conditional upon the acquisition's closing.
Norex is seeking Toronto Stock Exchange approval to allow ARC Energy Venture Fund 4, its largest shareholder, to participate in the offering for up to C$6 million. ARC holds 20,268,657 of the company's 38,600,986 outstanding common shares.
Calgary, Alta.-based Norex provides two-dimensional and three-dimensional seismic data services to the mineral exploration sector.
| Issuer: | Norex Exploration Services Inc.
|
| Issue: | Units of one share and one half share warrant
|
| Amount: | C$15,000,300
|
| Units: | 14,286,000
|
| Greenshoe: | 1,429,000 units
|
| Price: | C$1.05
|
| Warrants: | One half warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.60
|
| Placement agent: | Westwind Partners Inc. (lead), BMO Nesbitt Burns Inc. and Blackmont Capital Inc.
|
| Pricing date: | Sept. 7
|
| Stock symbol: | Toronto: NRX
|
| Stock price: | C$1.06 at close on Sept. 6
|
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