By Laura Lutz
Des Moines, June 28 - Tagish Lake Gold Corp. priced a C$1 million non-brokered private placement of units.
The company also announced that it will not complete the non-brokered C$4 million private placement of units that priced on May 25. It was canceled in response to the C$10 million private placement with Wega Mining ASA that Tagish announced on Tuesday.
The C$1 million offering will consist of 5 million units of one share and one non-transferable warrant at C$0.20 per unit. Each whole warrant will be exercisable at C$0.30 for two years.
Directors and officers of the company are expected to subscribe for C$750,000 in the new offering.
Proceeds of that deal will be used for working capital.
In the C$10 million deal, Wega plans to buy 50 million units of one share and one warrant for C$0.20 per unit. Each warrant will be exercisable at C$0.30 for two years.
The Wega placement will be conducted in two tranches. The first, for C$2 million, is expected to settle upon approval from the TSX Venture Exchange. The second tranche, for C$8 million, is expected to close on Aug. 9.
The C$4 million placement was expected to consist of units of one flow-through share and one non-transferable half-share warrant at C$0.23 per unit. Each whole warrant will be exercisable for one non flow-through share at C$0.30 for 18 months.
Tagish will use the proceeds of the Wega deal to complete an exploration and feasibility program on its Skukum Creek project.
Following settlement of the full placement, but without exercise of any of the warrants, Wega will own about 35% of the outstanding shares of Tagish.
Tagish is a gold and silver exploration company based in Vancouver, B.C.
| Issuer: | Tagish Lake Gold Corp.
|
| Issue: | Units of one share and one non-transferable warrant
|
| Amount: | C$1 million
|
| Units: | 5 million
|
| Price: | C$0.20
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Non-brokered
|
| Pricing date: | June 28
|
| Stock symbol: | TSX Venture: TLG
|
| Stock price: | C$0.185 at close June 28
|
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