Debentures convert into 2,083,333 units; deal funds corporate purposes
By Devika Patel
Knoxville, Tenn., Sept. 12 - Mukuba Resources Ltd. said it raised C$1.3 million in the first tranche of a C$1.5 million private placement of units. The deal priced on July 12.
The company is selling 12.5 million units of one common share and one warrant at C$0.12 per unit. It sold 10,835,000 units in the initial tranche.
Each warrant is exercisable at C$0.16 for two years. The warrant strike price is a 357% premium to the company's C$0.035 closing share price on July 11.
Cormark Securities Inc. and Ocean Equities Ltd. have committed to purchase at least C$500,000.
The debentures that were previously issued as part of the deal were automatically converted into 2,083,333 units, which are included in the 10,835,000 units sold in the first tranche.
Proceeds will be used for general corporate purposes.
Mukuba is a base metals exploration company based in Toronto.
| Issuer: | Mukuba Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1.5 million
|
| Units: | 12.5 million
|
| Price: | C$0.12
|
| Warrants: | One warrant for one share per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.16
|
| Agents: | Cormark Securities Inc. and Ocean Equities Ltd. (for at least C$500,000)
|
| Pricing date: | July 12
|
| Settlement date: | Sept. 12 (for C$1,300,200)
|
| Stock symbol: | TSX Venture: MKU
|
| Stock price: | C$0.035 at close July 11
|
| Market capitalization: | C$2.32 million
|
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