Deal has a C$900,000 greenshoe; Dundee Securities is the lead agent
By Devika Patel
Knoxville, Tenn., Aug. 22 – Rathdowney Resources Ltd. said it on Friday that it settled a C$1.37 million initial tranche of a C$6 million private placement of units. The deal priced with a 15% greenshoe for an additional C$900,000 on June 24 and will be conducted on a best-efforts basis by a syndicate of agents led by Dundee Securities Ltd.
The company is selling units of one common share and one warrant at C$0.19 per unit. It sold 7.19 million units in the first tranche.
Each warrant is exercisable at C$0.24 for two years. The strike price reflects a 20% premium to the June 23 closing share price of C$0.20.
Proceeds will be used to advance Polish permitting activities, to further refine mining engineering work on the company's Olza zinc-lead-silver project and for general corporate working capital purposes.
The base metal and ore explorer is based in Vancouver, B.C.
| Issuer: | Rathdowney Resources Ltd.
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| Issue: | Units of one common share and one warrant
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| Amount: | C$6 million
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| Greenshoe: | 15%, or C$900,000
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| Price: | C$0.19
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| Warrants: | One warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.24
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| Agent: | Dundee Securities Ltd. (lead)
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| Pricing date: | June 24
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| Settlement date: | Aug. 19 (for C$1,366,100)
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| Stock symbol: | TSX Venture: RTH
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| Stock price: | C$0.20 at close June 23
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| Market capitalization: | C$23.62 million
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