Offering's proceeds are earmarked for working capital and exploration
By Devika Patel
Knoxville, Tenn., Sept. 22 - North American Gem Inc. said it completed the first tranche of a C$1 million non-brokered private placement of units, raising C$792,086. This deal priced for C$1.8 million on Aug. 4 and was reduced to its current size on Sept. 8.
The company is selling 12.5 million units of one common share and one warrant at C$0.08 each. It sold 9,901,078 units in the initial tranche.
The warrants are each exercisable for three years. The strike price in the first year, C$0.10, reflects a 23.08% discount to the Aug. 3 closing share price of C$0.13. The strike price in the second year, C$0.12, reflects a 7.69% discount to the Aug. 3 closing share price. The strike price in the third year, C$0.15, reflects a 15.39% premium to the Aug. 3 closing share price.
Proceeds will be used for general working capital and exploration.
Based in Vancouver, B.C., North American Gem is a mineral resource exploration company.
| Issuer: | North American Gem Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1 million
|
| Shares: | 12.5 million
|
| Price: | C$0.08
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.10 in the first year, C$0.12 in the second year, C$0.15 in the third year
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 4
|
| Amended: | Sept. 8
|
| Settlement date: | Sept. 22 (for C$792,086)
|
| Stock symbol: | TSX Venture: NAG
|
| Stock price: | C$0.13 at close Aug. 4
|
| Market capitalization: | C$14.7 million
|
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