Deal conducted by Wellington West; funds for Tanlouka gold project
By Devika Patel
Knoxville, Tenn., April 8 - Channel Resources Ltd. said it will conduct a C$5 million private placement of units through underwriter Wellington West Capital Markets Inc. There is a C$2.5 million greenshoe.
The company will sell 14.71 million units at C$0.34 apiece. Each unit will consist of one common share and one half-share warrant, with each whole two-year warrant exercisable at C$0.50. The strike price reflects a 26.58% premium to the April 7 closing share price of C$0.395.
Settlement is expected May 6.
Proceeds will be used to advance the company's Tanlouka gold project in Burkina Faso and for general corporate purposes.
Channel is a mineral exploration company based in Vancouver, B.C.
| Issuer: | Channel Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5,001,400
|
| Greenshoe: | C$2,500,700
|
| Units: | 14.71 million
|
| Price: | C$0.34
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.50
|
| Underwriter: | Wellington West Capital Markets Inc.
|
| Pricing date: | April 8
|
| Settlement date: | May 6
|
| Stock symbol: | TSX Venture: CHU
|
| Stock price: | C$0.395 at close April 7
|
| Market capitalization: | C$30.17 million
|
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