By Laura Lutz
Des Moines, Nov. 6 - Merrex Gold Inc. priced a private placement of flow-through shares and units for up to C$6 million.
The company plans to sell up to 2,857,143 units of one share and one half-share warrant at C$0.70 per unit and up to 5 million flow-through shares at C$0.80 per share.
Each full warrant will be exercisable at C$0.90 for one year. Any time more than four months after closing, expiry of the warrants may be accelerated to 30 days if the weighted average trading price of the company's shares exceeds C$1.50 for any 20 consecutive trading days.
Paradigm Capital Inc. and Wellington West Capital Markets Inc. will act as co-lead agents for the deal.
The agents have a greenshoe for up to C$1 million of additional units.
Proceeds will be used for exploration and development at the company's Merrex Mali and Jubilee projects. Proceeds from the units will also be used for general corporate purposes.
Merrex gold is a mineral exploration company based in Halifax, N.S.
| Issuer: | Merrex Gold Inc.
|
| Issue: | Flow-through shares and units of one share and one half-share warrant
|
| Amount: | C$6 million
|
| Agents: | Paradigm Capital Inc. (lead), Wellington West Capital Markets Inc. (lead)
|
| Pricing date: | Nov. 6
|
| Stock symbol: | TSX Venture: MXI
|
| Stock price: | C$0.72 at close Nov. 5
|
|
|
| Flow-through shares
|
| Shares: | 5 million
|
| Price: | C$0.80
|
| Warrants: | No
|
|
|
| Units
|
| Units: | 2,857,143
|
| Greenshoe: | For C$1 million
|
| Price: | C$0.70
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.90
|
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