By Devika Patel
Knoxville, Tenn., Jan. 6 - ValGold Resources Ltd. said it will raise C$1.02 million in a private placement of subscription receipts. The company also hopes to consolidate its shares on the basis of one new consolidated common share for five existing shares.
The company will sell 6 million receipts at C$0.17 apiece.
If the proposed share consolidation is approved by shareholders, each receipt will convert into one unit of one consolidated common share and one warrant, which is exercisable at C$0.25 for five years.
If the shareholders do not approve the share consolidation, the receipts will convert into a 10% unsecured promissory note with a principal equal to the amount invested. The notes will be putable after 15 months.
If the subscription receipts are exchanged for notes, investors will also receive a bonus equal to 20% of the notes' principal, which will be paid in non-consolidated common shares.
Settlement is expected Jan. 21.
Vancouver, B.C.-based ValGold is a mining development company focused on exploring high-value targets in a portfolio of properties in the Guiana Shield of South America.
| Issuer: | ValGold Resources Ltd.
|
| Issue: | Subscription receipts exchangeable for units of one consolidated common share and one warrant or 10% unsecured promissory notes
|
| Amount: | C$1.02 million
|
| Receipts: | 6 million
|
| Price: | C$0.17
|
| Warrants: | One per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.25
|
| Put option: | After 15 months
|
| Pricing date: | Jan. 6
|
| Settlement date: | Jan. 21
|
| Stock symbol: | TSX Venture: VAL
|
| Stock price: | C$0.04 at close Jan. 6
|
| Market capitalization: | C$4.39 million
|
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