Best-efforts deal raises funds for exploration, pre-feasibility study
By Devika Patel
Knoxville, Tenn., Feb. 6 - SG Spirit Gold Inc. said it has arranged a C$12.5 million private placement of subscription receipts.
The company will sell subscription receipts at C$0.75 apiece and up to C$7 million of flow-through receipts at C$0.85 apiece. The purchase prices are 200% and 240% premium to C$0.25, the Feb. 3 closing share price.
Each subscription receipt will be automatically converted into one unit of a common share and one half-share warrant. The warrants will be exercisable at C$1.25 for two years. The strike price is a 400% premium to the Feb. 3 closing price.
Each flow-through receipt will be automatically converted into one flow-through common share.
The offering is being conducted on a best-efforts basis by a syndicate of agents co-led by NCP Northland Capital Partners Inc. and Desjardins Securities Inc.
Settlement is expected April 15.
Proceeds will be used for the pre-feasibility study and exploration on the Buchans Property, Tulks North Property and Bobby's Pond base metals deposit and for general corporate purposes.
Based in Calgary, Alta., SG Spirit is a gold and base metal explorer. The company intends to change its name to Regiment Zinc Corp. to reflect its base metal focus.
| Issuer: | SG Spirit Gold Inc.
|
| Issue: | Subscription receipts convertible into units of a common share and one half-share warrant, flow-through subscription receipts convertible into one flow-through common share
|
| Amount: | C$12.5 million
|
| Agents: | NCP Northland Capital Partners Inc. and Desjardins Securities Inc. (co-leads)
|
| Pricing date: | Feb. 6
|
| Settlement date: | April 15
|
| Stock symbol: | TSX Venture: SG
|
| Stock price: | C$0.25 at close Feb. 6
|
| Market capitalization: | C$5.94 million
|
|
|
| Receipts
|
| Price: | C$0.75
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.25
|
|
|
| Flow-through receipts
|
| Amount: | C$7 million (maximum)
|
| Price: | C$0.85
|
| Warrants: | No
|
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