Company raising cash to repurchase 10% convertibles due March 4, 2011
By Angela McDaniels
Tacoma, Wash., Oct. 12 - Vista Gold Corp. increased the size of its private placement of special warrants to up to $33.76 million, according to a company news release. The deal priced for up to $30 million on Sept. 30.
The company now plans to sell up to 14,676,740 special warrants instead of 13,043,479. The price per special warrant remains $2.30, which is a 10.51% discount to the Sept. 29 closing share price of $2.57.
The agent is Sprott Private Wealth LP, and Vista Gold said it agreed to include a co-agent.
Once the company receives shareholder approval of the private placement, the special warrants will automatically convert into units of one common share and one warrant, with each five-year warrant exercisable at $3.50 in the first year, $4.00 in the second year, $4.50 in the third year and $5.00 thereafter. The strike prices are premiums of 36.19%, 55.64%, 75.1% and 94.55%, respectively, to the Sept. 29 closing share price.
Proceeds will be used to repurchase the company's $23 million of outstanding 10% senior secured convertible notes due March 4, 2011, advance the Mount Todd project and for general corporate purposes.
Vista Gold is a gold exploration company based in Denver.
| Issuer: | Vista Gold Corp.
|
| Issue: | Special warrants convertible into units of one common share and one warrant
|
| Amount: | $33,756,602
|
| Special warrants: | 14,676,740
|
| Price: | $2.30
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.50 in first year, $4.00 in second year, $4.50 in third year and $5.00 thereafter
|
| Agent: | Sprott Private Wealth LP
|
| Pricing date: | Sept. 30
|
| Upsized: | Oct. 12
|
| Stock symbol: | NYSE Amex: VGZ
|
| Stock price: | $2.57 at close Sept. 29
|
| Market capitalization: | $114.13 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
