Company sells receipts at C$0.85 apiece via syndicate of underwriters
By Devika Patel
Knoxville, Tenn., Sept. 21 - Roxgold Inc. said it arranged a C$20 million private placement of subscription receipts. The offering priced for C$18.5 million on Wednesday and was increased a few hours later.
The company will sell 23.53 million receipts at C$0.85 apiece on a bought-deal basis. The price per receipt reflects a 17.5% discount to the Sept. 20 closing share price of C$1.03.
Each receipt will convert into one common share once the escrow release conditions are met.
The deal will be conducted by a syndicate of underwriters led by Cormark Securities Inc. and including Fraser Mackenzie Ltd., GMP Securities LP, PI Financial Corp. and Pope & Co. Ltd.
Settlement is expected Oct. 6.
Proceeds will be used to pay the cash component of the company's planned acquisition of the remaining interests of a group of exploration projects in Burkina Faso, West Africa, from Riverstone Resources Inc., for exploration and for general working capital purposes.
The gold explorer is based in Vancouver, B.C.
| Issuer: | Roxgold Inc.
|
| Issue: | Subscription receipts
|
| Amount: | C$20,000,500
|
| Receipts: | 23.53 million
|
| Price: | C$0.85
|
| Warrants: | No
|
| Underwriters: | Cormark Securities Inc. (lead), Fraser Mackenzie Ltd., GMP Securities LP, PI Financial Corp. and Pope & Co. Ltd.
|
| Pricing date: | Sept. 21
|
| Upsized: | Sept. 21
|
| Settlement date: | Oct. 6
|
| Stock symbol: | TSX Venture: ROG
|
| Stock price: | C$0.92 at close Sept. 21
|
| Market capitalization: | C$46.32 million
|
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