Deal's agent, Cormark Securities, has C$900,900 greenshoe
By Devika Patel
Knoxville, Tenn., Sept. 8 - U.S. Silver Corp. said it plans to conduct a C$6 million private placement of units. There is a C$900,900 greenshoe.
The company will sell 23.1 million units at C$0.26 apiece on a bought-deal basis. Each unit consists of one common share and one half-share warrant. Each whole warrant will be exercisable at C$0.35 for two years.
The strike price reflects a 27.27% premium to C$0.275, the closing share price on Sept. 7.
Cormark Securities Inc. is the agent for the deal. Settlement is expected Sept. 29.
Proceeds will be used for the redevelopment of the Coeur Mine and for general working capital purposes.
"We've been wanting to reopen the Coeur mine," Tom Parker, the company's chief executive officer, said in an interview with Prospect News. "Money was available, and with higher silver prices, it made sense to do what we could do to increase production."
Parker noted that while the deal will result in "less than 10% dilution ... existing investors are not usually happy with dilution."
Still, Parker was optimistic that investors would see the value of the financing, as it could allow for increased production, which in turn "should pay dividends in the long run."
Wallace, Idaho-based U.S. Silver explores, develops and operates silver mining properties in northern Idaho.
| Issuer: | U.S. Silver Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$6 million
|
| Greenshoe: | C$900,900
|
| Units: | 23.1 million
|
| Price: | C$0.26
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.35
|
| Agent: | Cormark Securities Inc.
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 29
|
| Stock symbol: | TSX Venture: USA
|
| Stock price: | C$0.275 at close Sept. 7
|
| Market capitalization: | C$66.82 million
|
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