Brokered deal with C$500,000 greenshoe will finance La Plata Project
By Devika Patel
Knoxville, Tenn., May 20 – Toachi Mining Inc. said it increased a private placement of units to C$3 million from C$2 million. The deal has a C$500,000 greenshoe and priced on May 17.
The company will now sell 15 million units of one common share and one half-share warrant at C$0.20 per unit on a commercially-reasonable best efforts agency basis. The whole warrants are each exercisable at C$0.30 for two years. The strike price is a 20% premium to the May 16 closing share price of C$0.25.
The deal will be conducted by a syndicate of agents led by Beacon Securities Ltd.
Settlement is expected the week of June 6.
Proceeds will be used to advance the La Plata gold-copper-silver-zinc volcanogenic massive sulphide property in Ecuador and for working capital and general corporate purposes.
The Toronto company is developing a high grade gold-copper-silver-zinc project at La Plata in Ecuador.
| Issuer: | Toachi Mining Inc.
|
| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$3 million
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| Greenshoe: | C$500,000, or 2.5 million units
|
| Units: | 15 million
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| Price: | C$0.20
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.30
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| Agents: | Beacon Securities Ltd. (lead)
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| Pricing date: | May 17
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| Upsized: | May 20
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| Settlement date: | Week of June 6
|
| Stock symbol: | TSX Venture: TIM
|
| Stock price: | C$0.25 at close May 16
|
| Market capitalization: | C$4.71 million
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