Canaccord Genuity helps raise funds to advance Harper Creek project
By Devika Patel
Knoxville, Tenn., April 5 - Yellowhead Mining Inc. said it settled a C$20.49 million private placement of units via a syndicate of underwriters led by Canaccord Genuity Corp. The deal priced for C$20.01 million with a C$3 million greenshoe on March 14.
The company sold 14,129,655 units of one common share and one half-share warrant at C$1.45 apiece on a bought-deal basis. Of the units, 329,655 were part of the partially exercised greenshoe. Each whole two-year warrant will be exercisable at C$2.00. The strike price reflects a 36.99% premium to the March 11 closing share price of C$1.46.
"You take the money when it is offered so you can move your projects forward," Ronald Hanford, executive vice president of corporate development, told Prospect News. He said the funding should last the company "all the way through permitting."
"Certainly the [investors] that bought into it were quite excited about it," he said of investors' response, adding that both institutional and retail investors participated in the financing.
The deal also brought in some new investors, he said.
Proceeds will be used to advance the company's Harper Creek project and for general corporate purposes.
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$20,488,000 (including C$478,000 greenshoe)
|
| Units: | 14,129,655
|
| Price: | C$1.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.00
|
| Agent: | 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
|
| Market capitalization: | C$49.2 million
|
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