By Sheri Kasprzak
New York, Feb. 10 - Augusta Resource Corp. said it intends to raise up to C$35,055,000 in a private placement.
The company will sell up to 17.1 million special warrants at C$2.05 each.
The special warrants are exchangeable on a one-for-one basis for units of one share and one half-share warrant once a prospectus covering the underlying shares is declared effective.
The whole warrants are exercisable at C$3.10 each for the first year and at C$4.10 each for the second year.
A syndicate of agents led by Salman Partners Inc. and BMO Nesbitt Burns Inc., and including TD Securities Inc. and Wellington West Capital Markets Inc. has an over-allotment option for up to 1.71 million special warrants.
The deal is expected to close March 9.
Proceeds will be used for the acquisition of the Rosemont property in Arizona. The rest will be used for working capital.
Augusta, based in Vancouver, B.C., is a mineral exploration company.
| Issuer: | Augusta Resource Corp.
|
| Issue: | Special warrants exchangeable for units of one share and one half-share warrant
|
| Amount: | C$35,055,000
|
| Special warrants: | 17.1 million
|
| Greenshoe: | For up to 1.71 million special warrants
|
| Price: | C$2.05
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$3.10 for the first year, C$4.10 for the second year
|
| Placement agents: | Salman Partners Inc. (lead), BMO Nesbitt Burns Inc. (lead), TD Securities Inc. and Wellington West Capital Markets Inc.
|
| Pricing date: | Feb. 10
|
| Settlement date: | March 9
|
| Stock symbol: | TSX Venture: ARS
|
| Stock price: | C$2.04 at close Feb. 10
|
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