Deal with Northern Financial funds exploration at Lundberg project
By Devika Patel
Knoxville, Tenn., Jan. 24 - Buchans Minerals Corp. said it plans a private placement of units with a bought deal commitment from Northern Financial Corp. for C$1.5 million. The offer will raise a total of C$3 million.
The company will sell units of one common share and one warrant at C$0.11 apiece for C$1.5 million. It also will sell flow-through units of one flow-through common share and a half-share warrant at C$0.13 apiece for C$1.5 million.
Each unit warrant is exercisable at C$0.17 for two years. Each whole flow-through unit warrant is exercisable at C$0.18 for two years. The strike prices are 21.43% and 28.57% premiums to the Jan. 21 closing share price of C$0.14.
Proceeds will be used for exploration on Buchans Minerals' flagship Lundberg & Engine House project and for general working capital purposes.
Buchans is a Windsor, N.S., base metals explorer.
| Issuer: | Buchans Minerals Corp.
|
| Issue: | Units of one common share and one warrant and units of one flow-through common share and a half-share warrant
|
| Amount: | C$3 million
|
| Warrant expiration: | Two years
|
| Investor: | Northern Financial Corp. (for C$1.5 million)
|
| Pricing date: | Jan. 24
|
| Stock symbol: | TSX Venture: BMC
|
| Stock price: | C$0.14 at close Jan. 21
|
| Market capitalization: | C$13.46 million
|
|
|
| Units
|
| Amount: | C$1.5 million
|
| Price: | C$0.11
|
| Warrants: | One warrant per unit
|
| Warrant strike price: | C$0.17
|
|
|
| Flow-through units
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| Amount: | C$1.5 million
|
| Price: | C$0.13
|
| Warrants: | One half-share warrant per unit
|
| Warrant strike price: | C$0.18
|
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