Canaccord Genuity helps raise funds to advance Harper Creek project
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., March 14 - Yellowhead Mining Inc. said it will conduct a private placement of units via a syndicate of underwriters led by Canaccord Genuity Corp.
The C$20.01 million deal has a C$3 million greenshoe and is raising proceeds to advance the company's Harper Creek project and for general corporate purposes.
The company will sell 13.8 million units of one common share and one half-share warrant at C$1.45 apiece on a bought-deal basis. Each whole two-year warrant will be exercisable at C$2.00. The strike price reflects a 27% premium to the March 11 closing share price of C$1.46.
Pursuant to a pre-emptive rights agreement, investor Anthill resources Ltd. has the option to subscribe for units under the offering in order to maintain its equity stake. Should Anthill participate, the placement will be increased by the number of units Anthill purchases.
Ronald Handford, executive vice president of corporate development, said the company was undertaking the offering "because it allows us to move [the Harper Creek project] forward." Yellowhead recentaly wrapped a preliminary economic assessment on the site and plans to move ahead with a feasibility study.
Handford said the company is anticipating a C$25 million capital budget over the next year and that the financing would help provide the funds for said program. About half of the proceeds will be used for the feasibility study, with the remainder used for further exploration.
"The company is moving forward quite rapidly," he said.
Settlement is expected April 5.
The copper, gold and silver explorer is based in Vancouver, B.C.
| Issuer: | Yellowhead Mining Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$20.01 million
|
| Greenshoe: | C$3,001,500
|
| Units: | 13.8 million
|
| Price: | C$1.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.00
|
| Underwriter: | Canaccord Genuity Corp. (lead)
|
| Pricing date: | March 14
|
| Settlement date: | April 5
|
| Stock symbol: | TSX Venture: YMI
|
| Stock price: | C$1.46 at close March 11
|
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