Deal also sells 67 million units with quarter-share warrants at C$0.30
By Devika Patel
Knoxville, Tenn., May 24 – Americas Silver Corp. said it increased a private placement to C$30.05 million from C$20 million. The deal priced for about C$20 million of units and will now include C$10.05 million of subscription receipts.
GMP Securities LP and Medalist Capital Ltd. are the agents for the units sale, which priced on May 20. The receipts will be sold by a syndicate of agents co-led by GMP Securities LP and Medalist Capital Ltd. and including Cormark Securities Inc. and Mackie Research Capital Corp.
In the newest component, Americas Silver will sell 33.5 million subscription receipts at C$0.30 per receipt, a 3.23% discount to C$0.31, the May 19 closing share price.
As previously reported, the company also will sell about 67 million units of one common share and one quarter-share warrant at C$0.30 per unit, with each whole warrant exercisable at C$0.39 for five years. The strike price is a 25.81% premium to the May 19 closing share price.
Each receipt will be exchanged for an offering unit once shareholder approval is obtained for the offering and other conditions are satisfied on or before Sept. 19.
Eric Sprott will participate in the units offering.
Settlement is expected June 9.
Proceeds will be used for capital programs at the Galena Complex and San Rafael Property, debt repayment, working capital and general corporate purposes.
Americas Silver is a Toronto-based precious metals mining company that owns the Cosala Operations in Sinaloa, Mexico, and the Galena Mine complex in Idaho.
| Issuer: | Americas Silver Corp.
|
| Issue: | Units of one common share and one quarter-share warrant, subscription receipts
|
| Amount: | C$30.05 million (approximate)
|
| Price: | C$0.30
|
| Pricing date: | May 20
|
| Upsized: | May 24
|
| Settlement date: | June 9
|
| Stock symbol: | Toronto: USA
|
| Stock price: | C$0.31 at close May 19
|
| Market capitalization: | C$111.83 million
|
|
|
| Units
|
| Amount: | C$20 million (approximate)
|
| Units: | 67 million (approximate)
|
| Warrants: | One quarter-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.39
|
| Agents: | GMP Securities LP and Medalist Capital Ltd.
|
| Selected investor: | Eric Sprott
|
|
|
| Receipts
|
| Amount: | C$10.05 million
|
| Greenshoe: | C$1,507,500, or 5,025,000 receipts
|
| Receipts: | 33.5 million
|
| Warrants: | No
|
| Agents: | GMP Securities LP and Medalist Capital Ltd. (co-leads) Cormark Securities Inc. and Mackie Research Capital Corp.
|
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