By Devika Patel
Knoxville, Tenn., Aug. 29 - Arehada Mining Ltd. announced that it has raised C$1,002,500 in the second tranche of a C$3.15 million private placement of units announced on July 26.
The company sold 2,506,250 units at C$0.40 per unit. Each unit consists of one common share and one half-share warrant. Each warrant is exercisable at C$0.75 for two years.
The warrants will expire sooner if Arehada's share price closes at C$1.50 for 20 successive days. In that case, the warrants will expire on the 10th business day after the company has notified warrant holders.
The company paid finders' fees of 7%. In addition, the agents received 10% options to purchase units at C$0.50 apiece at any time for two years, with each unit consisting of one common share and one half-share warrant. The warrants have the same terms as the ones in the placement.
All securities have a four-month hold period.
Proceeds will be used for working capital.
Arehada Mining, formerly Dragon Capital Corp., is a Toronto-based capital pool company.
| Issuer: | Arehada Mining Ltd.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$1,002,500 for second tranche
|
| Units: | 2,506,250
|
| Price: | C$0.40
|
| Warrants: | One half-share warrant per unit
|
| Warrant strike price: | C$0.75
|
| Warrant expiration: | Two years; sooner if share price closes at C$1.50 for 20 successive days
|
| Fees: | 7%; also, 10% options to purchase units at C$0.50 apiece
|
| Pricing date: | July 26
|
| Settlement date: | Aug. 29
|
| Stock symbol: | Toronto: AHD
|
| Stock price: | C$0.60 at close on July 26
|
| Stock price: | C$0.415 at close on Aug. 28
|
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