Proceeds used for exploration of properties, general working capital
By Devika Patel
Knoxville, Tenn., Dec. 6 - Golden Valley Mines Ltd. said it plans a non-brokered private placement of stock and units. The deal will raise C$3.8 million by Dec. 20.
The company will sell 6,666,666 units at C$0.45 each for C$3 million. Each unit will consist of one common share and a half-share warrant, with each whole warrant exercisable at C$0.75 for 18 months.
Golden Valley Mines also will sell 1,290,322 flow-through common shares at C$0.62 each for C$800,000.
The strike price of the warrants represents a 36.36% premium to the Dec. 3 closing share price of C$0.55. The price per flow-through share is a 12.73% premium to that price.
Proceeds will be used to incur grassroots exploration expenditures on Golden Valley's property portfolio in Quebec, Ontario and Sierra Leone and for general working capital.
Based in Montreal, Golden Valley Mines is a junior mining exploration company with a focus on early stage exploration projects. It owns about 131 exploration properties.
| Issuer: | Golden Valley Mines Ltd.
|
| Issue: | Units of one common share and a half-share warrant; flow-through common shares
|
| Amount: | C$3.8 million
|
| Agent: | Non-brokered
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 20
|
| Stock symbol: | TSX Venture: GZZ
|
| Stock price: | C$0.55 at close Dec. 3
|
| Market capitalization: | C$30.69 million
|
|
|
| Units
|
| Amount: | C$3 million
|
| Units: | 6,666,666
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.75
|
|
|
| Flow-through shares
|
| Amount: | C$800,000
|
| Shares: | 1,290,322
|
| Price: | C$0.62
|
| Warrants: | No
|
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