Receipts are convertible into units of a share, a half-share warrant
By Devika Patel
Knoxville, Tenn., Oct. 31 - Northern Sun Mining Corp. said it will conduct a C$30 million private placement of subscription receipts. The deal is being conducted in connection with the company's planned acquisition of the Snow Lake property in Manitoba from QMX Gold Corp.
The company will sell 50 million receipts, which convert into units of one common share and one half-share warrant, at C$0.60 per receipt. The price per receipt is identical to the Oct. 30 closing share price.
Each whole warrant is exercisable at C$0.75 for one year. The strike price reflects a 25% premium to the Oct. 30 closing share price.
Jien International Investment Inc. will participate.
Settlement is expected Nov. 30.
Proceeds will be used for the acquisition.
The Toronto company produces nickel, copper, cobalt and platinum group metals.
| Issuer: | Northern Sun Mining Corp.
|
| Issue: | Subscription receipts convertible into units of one common share and one half-share warrant
|
| Amount: | C$30 million
|
| Receipts: | 50 million
|
| Price: | C$0.60
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.75
|
| Investor: | Jien International Investment Inc.
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 30
|
| Stock symbol: | Toronto: NSC
|
| Stock price: | C$0.60 at close Oct. 30
|
| Market capitalization: | C$2.48 million
|
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