Company sells 6.95 million shares, warrants in non-brokered deal
By Marisa Wong
Madison, Wis., May 27 - Precipitate Gold Corp. said it completed a non-brokered private placement of 6,953,333 units at C$0.15 apiece for proceeds of C$1.04 million.
Each unit consists of one common share and one common share warrant. Each warrant entitles the holder to purchase an additional common share at C$0.25 per share until May 26, 2015. The strike price reflects a 38.89% premium to the May 22 closing share price of C$0.18.
The warrant expiry date is subject to acceleration if the daily volume-weighted average trading price of the company's stock is equal to or exceeds C$0.50 for a period of 10 consecutive trading days between Sept. 27 and May 26, 2015.
Precipitate will use proceeds for future exploration of its projects in the Dominican Republic and Sonora State, Mexico, as well as for general working capital purposes.
The mineral exploration company is based in Vancouver, B.C.
| Issuer: | Precipitate Gold Corp.
|
| Issue: | Units of one common share and one common share purchase warrant
|
| Amount: | C$1,043,000
|
| Units: | 6,953,333
|
| Price: | C$0.15
|
| Warrants: | One common share purchase warrant per unit
|
| Warrant expiration: | May 26, 2015; sooner if daily-volume weighted average trading price of company's stock is equal to or exceeds C$0.50 for a period of 10 consecutive trading days between Sept. 27 and May 26, 2015
|
| Warrant strike price: | C$0.25
|
| Agent: | Non-brokered
|
| Announcement date: | May 26
|
| Stock symbol: | TSX Venture: PRG
|
| Stock price: | C$0.18 at close May 22
|
| Market capitalization: | C$6.45 million
|
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