By Susanna Moon
Chicago, June 4 - New Millennium Capital Corp. said it completed a C$20 million private placement of stock with Tata Steel Global Minerals Holdings Pte. Ltd.
In the deal announced on May 17, Tata Steel purchased 14.29 million common shares at a subscription price of C$1.40 per common share.
Proceeds will be used to finalize outstanding DSO agreements and environmental work, initiate gravity and magnetic airborne geophysical surveys, begin taconite project feasibility and for general corporate and working capital purposes.
Tata Steel now holds 40,429,270 common shares, representing 27.4% of the company's outstanding shares.
Tata Steel may increase or decrease its investment in the company depending on market conditions or other relevant factors, according to a New Millennium press release.
"As we await Tata Steel's production decision for our DSO project, the additional funds raised in the placement ensure that we have ample resources to conclude the last remaining tasks for the DSO project and also to increase our development efforts for our large taconite projects," Robert Martin, President and CEO of New Millennium, said in the release.
The placement is subject to TSX Venture Exchange approval.
New Millennium is a mineral exploration company based in Calgary, Alta.
| Issuer: | New Millennium Capital Corp.
|
| Issue: | Common shares
|
| Amount: | C$20 million
|
| Shares: | 14,285,714
|
| Price: | C$1.40
|
| Warrants: | No
|
| Investor: | Tata Steel Global Minerals Holdings Pte Ltd.
|
| Announcement date: | May 17
|
| Settlement date: | June 4
|
| Stock symbol: | Canada: NML
|
| Stock price: | C$1.14 at close May 14
|
| Market cap: | C$145.00 million
|
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