Non-brokered offering arranged with investor Minco at C$0.065 per unit
By Devika Patel
Knoxville, Tenn., April 30 - Buchans Minerals Corp. said it arranged a C$1 million non-brokered private placement of units with Minco plc.
The company will sell 15,384,615 units of one common share and one half-share warrant at C$0.065 per unit. Each whole warrant will be exercisable at C$0.10 for two years. The strike price reflects a 66.67% premium to the April 27 closing share price of C$0.06.
Proceeds will be used for general corporate purposes.
The offering is part of an arrangement between the company and investor under which Minco may earn a 51% interest in the company's base metal properties in Newfoundland. The investor may earn the interest by spending C$8 million to advance the Lundberg deposit to final feasibility over four years and helping to explore further the company's mineral properties in the Buchans camp. Minco will pay Buchans C$1 million for an exclusive six-month option to evaluate the Woodstock manganese property in New Brunswick, with a view to signing a joint-venture agreement to develop the property.
Buchans is a Windsor, N.S., base metals explorer.
| Issuer: | Buchans Minerals Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$1 million
|
| Units: | 15,384,615
|
| Price: | C$0.065
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Investor: | Minco plc
|
| Pricing date: | April 30
|
| Stock symbol: | TSX Venture: BMC
|
| Stock price: | C$0.06 at close April 27
|
| Market capitalization: | C$9.05 million
|
© 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.
