Agent syndicate helps fund exploration of Burkina Faso JV properties
By Devika Patel
Knoxville, Tenn., April 12 - Roxgold Inc. said it will conduct a C$7.5 million private placement of units. The deal has a C$1.13 million greenshoe and is raising proceeds for exploration of the company's Burkina Faso JV properties and general working capital purposes.
The company will sell 10 million units of one common share and one half-share warrant at C$0.75 apiece on a bought-deal basis. Each whole two-year warrant will be exercisable at C$1.00. The strike price reflects a 26.58% premium to the April 11 closing share price of C$0.79.
The offering is being conducted via a syndicate of underwriters led by Cormark Securities Inc. and including Fraser Mackenzie Ltd., GMP Securities LP, PI Financial Corp., Pope & Co. Ltd. and Toll Cross Securities Inc.
Settlement is expected May 10.
The gold explorer is based in Vancouver, B.C.
| Issuer: | Roxgold Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$7.5 million
|
| Greenshoe: | C$1,125,000
|
| Units: | 10 million
|
| Price: | C$0.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Underwriters: | Cormark Securities Inc. (lead), Fraser Mackenzie Ltd., GMP Securities LP, PI Financial Corp., Pope & Co. Ltd. and Toll Cross Securities Inc.
|
| Pricing date: | April 12
|
| Settlement date: | May 10
|
| Stock symbol: | TSX Venture: ROG
|
| Stock price: | C$0.79 at close April 11
|
| Market capitalization: | C$24.89 million
|
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