Fully subscribed deal with C$1 million greenshoe finances exploration
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Aug. 12 - Midlands Minerals Corp. said it once again increased a private placement of units to C$7.5 million. Bayfront Capital Partners Ltd., the agent, has a C$1 million greenshoe. The fully subscribed deal priced for C$3 million with a C$2 million greenshoe on July 28 and was increased to C$6.5 million with a C$1 million greenshoe on Aug. 2.
The company will now sell 93.75 million units of one common share and one warrant at C$0.08 per unit on a best-efforts basis.
Each two-year warrant will be exercisable at C$0.10, a 17.65% premium to the July 27 closing share price of C$0.085.
"It's good," said Nick Tintor, chairman of the company. "The company has gone through a major transition." The financing, he said, was part of that transition.
"The agents have done a great job," he added. "In light of [current market conditions] it was very good."
Tintor said the funds should take the company through 2012.
Settlement is expected Aug. 25.
Proceeds will be used for exploration programs at the company's Sian and Kaniago gold projects located in Ghana and general corporate purposes.
Midlands is a gold and diamond exploration company based in Toronto.
| Issuer: | Midlands Minerals Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$7.5 million
|
| Greenshoe: | C$1 million
|
| Units: | 93.75 million
|
| Price: | C$0.08
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Bayfront Capital Partners Ltd.
|
| Pricing date: | July 28
|
| Upsized: | Aug. 2, Aug. 12
|
| Settlement date: | Aug. 25
|
| Stock symbol: | TSX Venture: MEX
|
| Stock price: | C$0.085 at close July 27
|
| Market capitalization: | C$8.75 million
|
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