Agent syndicate helps raise funding for exploration, working capital
By Devika Patel
Knoxville, Tenn., Nov. 12 - Taku Gold Corp. said it plans a private placement of units. A syndicate of agents, co-led by Fraser Mackenzie Ltd. and Union Securities Ltd., will assist the company in raising C$5 million on a best-efforts basis.
The company will sell 7,895,000 units of one common share and one warrant at C$0.38 apiece for C$3 million and 4,762,000 flow-through units of one flow-through common share and one half-share warrant at C$0.42 apiece for C$2 million.
Each whole two-year warrant will be exercisable at C$0.65, a 64.56% premium to the Nov. 11 closing share price of C$0.395.
Mike Gillis, investor relations for Taku, said "anytime you get an opportunity to do a financing at a reasonable level," you take it. "We wanted to make sure we had [enough cash in the coffers] for our exploration program."
Gillis noted that he thought the deal's agents had already taken down a majority of the funding.
Settlement is expected Dec. 10.
Proceeds will be used for exploration and general working capital purposes.
The mineral explorer is based in Vancouver, B.C.
Stephanie N. Rotondo contributed to this article
| Issuer: | Taku Gold Corp.
|
| Issue: | Units of one common share and one warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$5 million
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.65
|
| Agent: | Fraser Mackenzie Ltd. and Union Securities Ltd. (co-leads)
|
| Pricing date: | Nov. 12
|
| Settlement date: | Dec. 10
|
| Stock symbol: | TSX Venture: TAK
|
| Stock price: | C$0.395 at close Nov. 11
|
| Market capitalization: | C$8 million
|
| Units
|
|
|
| Amount: | C$3 million
|
| Units: | 7,895,000
|
| Price: | C$0.38
|
| Warrants: | One warrant per unit
|
| Flow-through units
|
|
|
| Amount: | C$2 million
|
| Units: | 4,762,000
|
| Price: | C$0.42
|
| Warrants: | One half-share warrant per unit
|
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