By Angela McDaniels
Tacoma, Wash., May 5 - Nemaska Exploration Inc. has arranged to sell C$1 million of units and C$1 million of flow-through units in a private placement, according to a company news release.
The company will sell up to 2,222,223 units for C$0.45 each and up to 2 million flow-through units for C$0.50 each.
There is an over-allotment option for approximately C$500,000 of units and approximately C$500,000 of flow-through units.
The company said the proceeds from the units offering will not be less than the proceeds from the flow-through units offering.
Each unit is made up of one common share and one warrant. Each flow-through unit is made up of one flow-through common share and one half-share purchase warrant.
Each full warrant is exercisable for two years at C$0.60.
The warrants will be subject to acceleration if the company's shares close at or above C$1.20 for at least 20 consecutive trading days.
Sandfire Securities Inc. is the lead agent.
The placement is expected to close May 26.
The proceeds from the units will be used for general working capital purposes, and the proceeds from the flow-through units will be used for exploration and development of the company's Quebec properties.
Nemaska is a mineral exploration company based in Quebec City.
| Issuer: | Nemaska Exploration Inc.
|
| Issue: | Units of one share and one warrant; flow-through units of one flow-through share and one half-share warrant
|
| Amount: | C$2 million
|
| Greenshoe: | C$1 million
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.60
|
| Agent: | Sandfire Securities Inc.
|
| Pricing date: | May 5
|
| Settlement date: | May 26
|
| Stock symbol: | TSX Venture: NMX
|
| Stock price: | C$0.41 at close May 4
|
| Market capitalization: | C$13.61 million
|
|
|
| Units
|
| Amount: | C$1 million
|
| Greenshoe: | C$500,000
|
| Units: | 2,222,223
|
| Price: | C$0.45
|
| Warrants: | One per unit
|
|
|
| Flow-through units
|
| Amount: | C$1 million
|
| Greenshoe: | C$500,000
|
| Units: | 2 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
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