Non-brokered deal oversubscribed; insiders buy 7.52 million shares
By Marisa Wong
Madison, Wis., July 9 - Cantex Mine Development Corp. said it completed its previously announced non-brokered private placement of stock and units, raising C$1.76 million. The deal was oversubscribed, according to a news release.
On June 22, the company priced 24 million flow-through common shares at C$0.05 per share and 8 million units of one common share and one warrant at C$0.05 per unit for planned proceeds of C$1.6 million.
According to the latest release, the company sold an additional 2.72 million flow-through shares and 500,000 units prior to closing.
Each warrant will be exercisable at C$0.10 for five years. The price per share is identical to the June 21 closing share price. The strike price reflects a 100% premium to that price.
Insiders of the company subscribed for 7.52 million shares, the release noted.
Proceeds will be used for claims acquisition, follow-up sampling and drilling on the company's projects, as well as for general working capital purposes.
Kelowna, B.C.-based Cantex is a gold, uranium, nickel, copper, cobalt and platinum exploration company.
Issuer: | Cantex Mine Development Corp.
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Issue: | Flow-through common shares, units of one common share and one warrant
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Amount: | C$1,761,000 (increased from C$1.6 million)
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Agent: | Non-brokered
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Investors: | Insiders for 7.52 million shares
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Pricing date: | June 22
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Stock symbol: | TSX Venture: CD
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Stock price: | C$0.06 at close July 6
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Market capitalization: | C$16.7 million
|
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Shares
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Amount: | C$1,336,000
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Shares: | 26.72 million (up from 24 million)
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Price: | C$0.05
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Warrants: | No
|
|
Units
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Amount: | C$425,000
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Units: | 8.5 million (up from 8 million)
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Price: | C$0.05
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Warrants: | One warrant per unit
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Warrant expiration: | Five years
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Warrant strike price: | C$0.10
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