By Devika Patel
Knoxville, Tenn., Feb. 1 - Rainy River Resources Ltd. said it plans a C$40.01 million private placement of units. The deal has a C$10.01 million greenshoe.
The company will sell 8,082,000 units at C$4.95 apiece on a bought-deal basis. Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable at C$7.10 for two years.
The underwriting syndicate will be led by Wellington West Capital Markets Inc. Settlement is expected on Feb. 24.
Proceeds will be used to advance the Rainy River Gold Project and for working capital purposes.
Rainy River is a metals exploration company based in Vancouver, B.C.
| Issuer: | Rainy River Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$40,005,900
|
| Greenshoe: | C$10,008,900
|
| Units: | 8,082,000
|
| Price: | C$4.95
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$7.10
|
| Underwriters: | Wellington West Capital Markets Inc. (lead)
|
| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 24
|
| Stock symbol: | TSX Venture: RR
|
| Stock price: | C$5.15 at close Feb. 1
|
| Market capitalization: | C$294 million
|
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