Funds help explore La Ronge Project; Northern Financial participates
By Devika Patel
Knoxville, Tenn., March 31 - Golden Band Resources Inc. said it settled an C$8.42 million tranche of a private placement of units. The deal priced for C$10 million with a C$5 million greenshoe on Feb. 18.
The company is selling C$5 million of flow-through units of one common share and one half-share warrant at C$0.58 per unit. Each whole flow-through unit warrant will be exercisable at C$0.70 for two years.
The company also is selling C$5 million of units of one common share and one warrant at C$0.45 per unit. Each of these warrants will be exercisable at C$0.60 in the first two years and at C$0.65 in the third year.
Golden Band sold 16,875,687 units and 1,424,250 flow-through units in the first tranche.
The strike price of the flow-through unit warrants reflects a 32.08% premium to the Feb. 17 closing share price of C$0.53. The strike prices of the unit warrants are 13.21% and 22.64% premiums to that price.
There is a bought-deal commitment from Northern Financial Corp.; Northern Securities Inc. is the agent.
Proceeds will be used for exploration and development of the company's La Ronge Project and general corporate and working capital purposes.
"This financing will enable Golden Band to drill various deposits, most importantly the Komis deposit, which has not been drilled to depth and is open along strike and at depth," Golden Band's executive chairman Ronald Netolitzky said in a press release at pricing. "As a new producer we are focused on resource expansion in several of our 12 deposits to generate a steady mill feed for the Jolu mill. Our ultimate goal is to operate our mill at 1,000 tons per day and to produce 100,000 ounces per year."
Golden Band is a gold exploration company based in Saskatoon, Sask.
| Issuer: | Golden Band Resources Inc.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, units of one common share and one warrant
|
| Amount: | C$10 million
|
| Greenshoe: | C$5 million
|
| Agent: | Northern Securities Inc.
|
| Investor: | Northern Financial Corp.
|
| Pricing date: | Feb. 18
|
| Settlement date: | March 31 (for C$8,420,124)
|
| Stock symbol: | TSX Venture: GBN
|
| Stock price: | C$0.54 at close Feb. 18
|
| Market capitalization: | C$104.82 million
|
|
|
| Flow-through units
|
| Amount: | C$5 million
|
| Price: | C$0.58
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.70
|
|
|
| Units
|
| Amount: | C$5 million
|
| Price: | C$0.45
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike prices: | C$0.60 in the first two years, C$0.65 in the third year
|
© 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.
