By Devika Patel
Knoxville, Tenn., Dec. 18 - Trade Winds Ventures Inc. said it has taken in C$1.01 million in the second closing of a C$6.25 million private placement of units and flow-through units. The deal priced on Dec. 7 and the company raised C$2 million in the first tranche on Dec. 10.
In this brokered tranche, Trade Winds sold 1,666,666 flow-through units to Mineral Fields Group, and Northern Precious Metals Group bought 1.7 million flow-through units. The company only planned to sell up to 3,333,334 flow-through units at C$0.30 each for C$1 million.
These units comprise one flow-through common share and one half-share warrant. The whole warrants are exercisable at C$0.50 for one year.
Trade Winds also will sell 7 million non flow-through units in the non-brokered deal for C$1.75 million. These units have the same terms as those sold in the brokered deal.
Octagon Capital Corp. is the lead agent for the brokered portion of the offering and will receive an 8% commission, payable in cash or units, at Octagon's option. In addition, the agents will receive a number of compensation warrants equal to 8% of the number of units sold, exercisable for two years at C$0.25.
In the first non-brokered tranche, the company sold 8 million units to RBC Dominion Securities Inc.
The company plans to sell up to 14 million units at C$0.25 each in the brokered portion of the deal. The units comprise one common share and one half-share warrant. The whole warrants are exercisable at C$0.30 for two years.
Proceeds will be used for exploration, development, property acquisitions, investments and working capital.
Trade Winds, based in Timmins, Ont., is a gold exploration company.
Brokered portion
| Issuer: | Trade Winds Ventures Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$3.5 million (maximum)
|
| Units: | 14 million (maximum)
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Octagon Capital Corp. (lead)
|
| Investor: | Mineral Fields Group (for 1,666,666 flow-through units), Northern Precious Metals Group (for 1.7 million flow-through units)
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 10 (for C$2 million)
|
| Stock symbol: | TSX Venture: AAG
|
| Stock price: | C$0.26 at close Dec. 7
|
|
|
| Non-brokered portion
|
| Issuer: | Trade Winds Ventures Inc.
|
| Issue: | Units of one share and one half-share warrant, flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$2.75 (maximum)
|
| Agent: | Non-brokered
|
| Investor: | RBC Dominion Securities Inc. (for 8 million units)
|
| Pricing date: | Dec. 7
|
| Settlement date: | Dec. 18 (for C$1.01 million)
|
| Stock symbol: | TSX Venture: AAG
|
| Stock price: | C$0.70 at close Dec. 7
|
|
|
| Units
|
| Amount: | C$1.75 million
|
| Units: | 7 million (maximum)
|
| Price: | C$0.25
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
|
|
| Flow-through units
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| Amount: | C$1.01 million
|
| Units: | 3,366,666
|
| Price: | C$0.30
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.50
|
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