Offering sells units of common shares, half-share warrants at C$0.25
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., May 18 - Thunder Mountain Gold, Inc. said it plans a C$4.5 million non-brokered private placement of units.
The company will sell 18 million units of one common share and one half-share warrant at C$0.25 per unit. The whole warrants are exercisable at C$0.40 for two years.
The strike price is a 37.93% premium to the May 17 closing share price of C$0.29.
"We believe that the timing is right here based upon our corporate needs and the marketplace," Eric T. Jones, chief financial officer, said in an e-mail to Prospect News. "We have some exciting opportunities in front of us, and this financing will go directly toward advancing our South Mountain project, toward feasibility and further definition of our gold breccia, and will also move our Trout Creek Project - which we just announced with Newmont - forward by further refining the geophysics and geology to outline the gold target for drilling."
Jones also said that the company believes the "terms are very reasonable and a great opportunity for investors."
"The financing has been well received by investors," he said. "We now have to roll up our sleeves and make ourselves available to these interested parties - letting them know what our business plan is for expanding our gold and silver resources and how it will add value."
Proceeds primarily will be used to advance the South Mountain Project and initiate Thunder Mountain's portion of the Trout Creek/Reese River Valley Nevada Joint Exploration Agreement with Newmont. The balance will be used for working capital purposes.
Boise, Idaho-based Thunder Mountain is a gold exploration company.
| Issuer: | Thunder Mountain Gold, Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$4.5 million
|
| Units: | 18 million
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Agent: | Non-brokered
|
| Pricing date: | May 18
|
| Stock symbol: | TSX Venture: THM
|
| Stock price: | C$0.29 at close May 17
|
| Market capitalization: | C$7.83 million
|
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