Deal with C$1.06 million greenshoe finances exploration at Monterde
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., July 26 - Kimber Resources Inc. said it settled an C$8.1 million private placement of stock via a syndicate of underwriters led by PI Financial Corp. and including Haywood Securities Inc. and Canaccord Genuity Inc. The deal priced for C$7.04 million with a C$1.06 million greenshoe on July 7.
The company sold 5.06 million common shares at C$1.60 per share on a bought-deal basis. Of the shares, 660,000 were part of the fully exercised greenshoe. The price per share reflects a 5.88% discount to the July 6 closing share price of C$1.70.
Matthew Hamilton, manager of investor relations for the company, told Prospect News that investors reacted favorably to the new financing.
"Most of our peers' [stock] has decreased in the last few weeks," he said. Meanwhile, Kimber's stock has risen to almost C$2.00.
"It filled quite quickly," Hamilton said, adding that the deal was "fully oversubscribed."
"It's the first bought deal that we've ever done," he remarked, noting that such a transaction was a "more powerful" financing than a "best-efforts" placement.
Proceeds will be used for exploration and development at the Monterde property, including a pre-feasibility study and continued drilling, and for general corporate and working capital purposes.
Hamilton said the company currently has about C$14.5 million in cash available, including the new funds. With a monthly burn rate of "significantly less than C$1 million," he said he expects the money could last through the next 12 months.
Based in Vancouver, B.C., Kimber is a gold and silver exploration company.
| Issuer: | Kimber Resources Inc.
|
| Issue: | Common shares
|
| Amount: | C$8,096,000 (including C$1,056,000 greenshoe)
|
| Shares: | 5.06 million
|
| Price: | C$1.60
|
| Warrants: | No
|
| Agents: | PI Financial Corp. (lead), Haywood Securities Inc. and Canaccord Genuity Inc.
|
| Pricing date: | July 7
|
| Settlement date: | July 26
|
| Stock symbol: | Toronto: KBR
|
| Stock price: | C$1.70 at close July 6
|
| Market capitalization: | C$150.51 million
|
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