Non-brokered offering finances Bonasika bauxite property in Guyana
By Devika Patel
Knoxville, Tenn., May 23 - First Bauxite Corp. said it has arranged a C$12 million non-brokered private placement of units with Resource Capital Fund V LP and the Pacific Road Resources Funds.
The company will sell 22,641,510 units of one common share and one half-share warrant at C$0.53 per unit, with each whole three-year warrant exercisable at C$0.75. The strike price reflects a 66.67% premium to the May 22 closing share price of C$0.45.
Proceeds will be used primarily for development of the company's Bonasika refractory grade bauxite property in Guyana, as well as general working capital expenses.
First Bauxite is based in Vancouver, B.C., and explores and develops bauxite deposits.
| Issuer: | First Bauxite Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$12 million
|
| Units: | 22,641,510
|
| Price: | C$0.53
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.75
|
| Agent: | Non-brokered
|
| Investors: | Resource Capital Fund V LP, the Pacific Road Resources Funds
|
| Pricing date: | May 23
|
| Stock symbol: | TSX Venture: FBX
|
| Stock price: | C$0.45 at close May 22
|
| Market capitalization: | C$24.23 million
|
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