By Devika Patel
Knoxville, Tenn., Feb. 17 - Novus Gold Corp. said it plans a C$6.5 million private placement of shares and units.
The company will sell up to 10 million flow-through common shares at C$0.45 each, generating up to C$4.5 million of proceeds.
Novus also will sell up to 5 million units at C$0.40 apiece for a total of up to C$2 million.
Each unit will consist of one share and one half-share warrant, with each whole warrant exercisable at C$0.60 for two years.
Proceeds will be used for exploration, work programs on the company's mineral exploration properties in the Dominican Republic and for working capital.
The gold explorer is based in Vancouver, B.C.
| Issuer: | Novus Gold Corp.
|
| Issue: | Flow-through common shares, units of one share and one half-share warrant
|
| Amount: | C$6.5 million
|
| Pricing date: | Feb. 17
|
| Stock symbol: | TSX Venture: NOV
|
| Stock price: | C$0.40 at close Feb. 16
|
| Market capitalization: | C$8.22 million
|
|
|
| Flow-through shares
|
| Amount: | C$4.5 million
|
| Shares: | 10 million
|
| Price: | C$0.45
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$2 million
|
| Units: | 5 million
|
| Price: | C$0.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60
|
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