Agent Northern Securities conducting offering on a best-efforts basis
By Devika Patel
Knoxville, Tenn., April 25 - Northern Freegold Resources Ltd. said it amended the terms of a C$6 million private placement of units. Northern Securities Inc. is the agent for the deal, which priced March 27 and has a 15% greenshoe.
The company will now sell flow-through units of one flow-through common share and one half-share warrant at C$0.21 per unit and non-flow-through units of one share and one half-share warrant at C$0.16 per unit on a best-efforts basis.
Each whole flow-through unit warrant will be exercisable at C$0.26 for 18 months. Each whole non-flow-through unit warrant will be exercisable at C$0.22 for two years. The strike prices are a 4% premium and 12% discount to the March 26 closing share price of C$0.25.
The company originally planned to sell 21,428,571 units of one flow-through common share and one half-share warrant at C$0.28 per unit.
Proceeds will be used for exploration on the Freegold Mountain property and as working capital.
Northern Freegold is a resource exploration and development company based in Vancouver, B.C.
| Issuer: | Northern Freegold Resources Ltd.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, non-flow-through units of one common share and one half-share warrant
|
| Amount: | C$6 million
|
| Greenshoe: | 15%
|
| Warrants: | One half-share warrant per unit
|
| Agent: | Northern Securities Inc.
|
| Pricing date: | March 27
|
| Revised: | April 25
|
| Stock symbol: | TSX Venture: NFR
|
| Stock price: | C$0.25 at close March 26
|
| Market capitalization: | C$17.85 million
|
|
|
| Flow-through units
|
| Price: | C$0.21
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.26
|
|
|
| Non-flow-through units
|
| Price: | C$0.16
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.22
|
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