By Angela McDaniels
Tacoma, Wash., May 28 - Northern Freegold Resources Ltd. has arranged to sell C$7 million of stock-and-warrant units, according to a company news release.
Of the total amount, C$4 million will be sold on a bought-deal basis through a syndicate of underwriters led by Canaccord Capital Corp. and including Dundee Securities Corp. and Haywood Securities Inc. and C$3 million will be sold in a non-brokered private placement.
The per-unit price is C$0.50. Each unit consists of one common share and one-half of a warrant. Each whole warrant is exercisable at a price of C$0.75 for two years after closing.
The company will sell 8 million units in the bought deal financing and 6 million in the placement.
The underwriters have an over-allotment option for C$1 million of units.
The proceeds will be used for general working capital as well as ongoing exploration on the Freegold Mountain project.
The offering is scheduled to close on June 17.
Northern Freegold is precious metals exploration and development company based in Vancouver, B.C.
| Issuer: | Northern Freegold Resources Ltd.
|
| Issue: | Units
|
| Amount: | C$7 million
|
| Units: | 14 million
|
| Price: | C$0.50
|
| Warrants: | One-half warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.75 per whole warrant
|
| Pricing date: | May 28
|
| Settlement date: | June 17
|
| Stock symbol: | TSX Venture: NFR
|
| Stock price: | C$0.50 at close May 27
|
|
|
| Bought deal financing
|
| Amount: | C$4 million
|
| Greenshoe: | C$1 million
|
| Units: | 8 million
|
| Agents: | Canaccord Capital Corp. (lead), including Dundee Securities Corp. and Haywood Securities Inc.
|
|
|
| Private placement
|
| Amount: | C$3 million
|
| Units: | 6 million
|
| Agent: | Non-brokered
|
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