Deal has C$10 million greenshoe; proceeds fund project advancement
By Devika Patel
Knoxville, Tenn., April 27 - Ryan Gold Corp. said it will conduct a C$40.03 million private placement of stock and units via a syndicate of underwriters co-led by GMP Securities LP and Dundee Securities Ltd. and including PowerOne Capital Markets Ltd. and Clarus Securities Inc. The deal has a C$10 million greenshoe, which will consist of units.
The company will sell 10 million units at C$2.00 apiece. Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$3.00 for two years. The strike price reflects a 40.85% premium to the April 26 closing share price of C$2.13.
The company also will sell 8.9 million flow-through common shares at C$2.25 each. The price per share is a 5.63% premium to the April 26 closing share price.
Settlement is expected on May 12.
Ned Goodman Investment Counsel Ltd. and Osisko Mining Corp. are among the investors. Osisko will invest C$4.59 million by buying units.
Proceeds will be used to advance the company's projects and for general working capital purposes.
Ryan is a gold and silver exploration company based in Vancouver, B.C.
| Issuer: | Ryan Gold Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$40,025,000
|
| Agents: | GMP Securities LP and Dundee Securities Ltd. (co-leads), PowerOne Capital Markets Ltd. and Clarus Securities Inc.
|
| Investors: | Ned Goodman Investment Counsel Ltd. and Osisko Mining Corp. (for C$4,586,666)
|
| Pricing date: | April 27
|
| Settlement date: | May 12
|
| Stock symbol: | TSX Venture: RYG
|
| Stock price: | C$2.13 at close April 26
|
| Market capitalization: | C$168.16 million
|
|
|
| Units
|
| Amount: | C$20 million
|
| Greenshoe: | C$10 million
|
| Units: | 10 million
|
| Price: | C$2.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$3.00
|
|
|
| Shares
|
| Amount: | C$20,025,000
|
| Units: | 8.9 million
|
| Price: | C$2.25
|
| Warrants: | No
|
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