By Laura Lutz
Des Moines, March 16 - Nevada Star Resource Corp. has received commitments for C$9.125 million from an upsized private placement.
The company sold 8.75 million subscription receipts at C$0.90 each, for proceeds of C$7.875 million.
Nevada Star also received commitments to buy C$1.25 million of units upon completion of the amalgamation.
Each subscription receipt will be exchangeable for one unit of one share and one half-share warrant upon completion of an amalgamation with Pure Nickel Inc. Each whole warrant is exercisable at C$1.20 for 18 months.
The share price reflects a one-for-five share consolidation that will be completed at the same time as the amalgamation.
Patica Securities Ltd. acted as agent for the deal.
The deal priced on Dec. 29 as an C$8 million offering. It was upsized to C$9.125 million on March 8.
If the amalgamation is not completed by March 30, the investors will be refunded the purchase price of the subscription receipts plus accrued interest.
Proceeds will be used for exploration on the company's properties and for working capital.
Nevada Star is a mineral exploration company based in Seattle.
| Issuer: | Nevada Star Resource Corp.
|
| Issue: | Subscription receipts exchangeable for units of one share and one half-share warrant; units of one share and one half-share warrant
|
| Amount: | C$9.125 million
|
| Agent: | Patica Securities Ltd.
|
| Pricing date: | Dec. 29
|
| Upsized: | March 8
|
| Settlement date: | March 15 (for subscription receipts)
|
| Stock symbol: | TSX Venture: NEV
|
| Stock price: | C$0.21 at close Dec. 29
|
| Stock price: | C$0.23 at close March 15
|
|
|
| Subscription receipts
|
| Amount: | C$7.875 million
|
| Subscription receipts: | 8.75 million
|
| Price: | C$0.90
|
| Warrants: | One half-share warrant per unit upon exchange
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.20
|
|
|
| Units
|
| Amount: | C$1.25 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.20
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
