By Sheri Kasprzak
Atlanta, Nov. 4 - Noront Resources Ltd. said Thursday it will enter the private placement market with a C$2 million offering.
The deal consists of flow-through shares and units of non flow-through common shares at C$0.55 per unit in some combination for a total of C$2 million.
Each unit consists of one non flow-through common share and one half-share warrant. The flow-through common share will be a "flow-through share" as defined in the Canadian Income Tax Act.
The whole warrants in the deal allow for the purchase of an additional non flow-through share at C$0.75 for 18 months.
Dundee Securities Corp. and Canaccord Capital Corp. will serve as placements agents in the deal.
The Toronto-based diamond exploration company plans to use the proceeds from the units for general working capital and the proceeds from the non flow-through units for exploration at the Windfall Lake project in Quebec.
| Issuer: | Noront Resources Ltd.
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| Issue: | Flow-through shares and units of non flow-through shares and one half-share warrant
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| Amount: | C$2 million
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| Placement agent: | Dundee Securities Corp. and Canaccord Capital Corp.
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| Announcement date: | Nov. 4
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| Stock price: | C$0.64 at close Nov. 4
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| Flow-through shares
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| Issue: | Flow-through common shares
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| Shares: | To be determined (within a combination of non flow-through units)
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| Price: | C$0.55
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| Warrants: | No
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| Non flow-through units
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| Issue: | Units of one common share and one half-share warrant
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| Shares: | To be determined (within a combination of flow-through shares)
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| Price: | C$0.55
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.75
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