Brokered best-efforts offering also includes a C$1 million greenshoe
By Devika Patel
Knoxville, Tenn., Feb. 17 - GTA Resources and Mining Inc. announced it has arranged a C$4 million private placement of units and stock. The deal has a greenshoe for C$1 million.
The company will sell C$1.5 million units of one common share and one half-share warrant at C$0.90 per unit and C$2.5 million of flow-through common shares at C$1.20 each.
Each whole warrant is exercisable at C$1.25 for 18 months.
The strike price represents a 23.76% premium to C$1.01, the Feb. 16 closing share price. The price per share is an 18.81% premium to that price.
The deal will be conducted on a best-efforts basis by a syndicate of agents led by Laurentian Bank Securities Inc. and including Euro Pacific Canada, Union Securities Ltd. and Casimir Capital Ltd.
Settlement is expected March 16.
Proceeds will be used for exploration activities on the Northshore and Auden projects and for working capital purposes.
GTA is a resource exploration company in Burlington, Ont.
| Issuer: | GTA Resources and Mining Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$4 million
|
| Greenshoe: | C$1 million
|
| Agents: | Laurentian Bank Securities Inc. (lead), Euro Pacific Canada, Union Securities Ltd. and Casimir Capital Ltd.
|
| Pricing date: | Feb. 17
|
| Settlement date: | March 16
|
| Stock symbol: | TSX Venture: GTA
|
| Stock price: | C$1.01 at close Feb. 16
|
| Market capitalization: | C$14.74 million
|
|
|
| Units
|
| Amount: | C$1.5 million
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.25
|
|
|
| Shares
|
| Amount: | C$2.5 million
|
| Price: | C$1.20
|
| Warrants: | No
|
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