Stonecap Securities to assist in funding exploration, working capital
By Devika Patel
Knoxville, Tenn., Dec. 6 - Sona Resources Corp. set the pricing for a private placement of units. The C$5 million best-efforts deal was announced Nov. 19. Stonecap Securities Inc. is the agent.
The company will sell 1.6 million flow-through units at C$1.25 apiece for C$2 million. Each flow-through unit consists of one flow-through common share and one half-share warrant.
The company also will sell 2,727,273 units at C$1.10 apiece for C$3 million. Each unit consists of one common share and one half-share warrant.
Each warrant is exercisable at C$1.50 for two years. The strike price represents a 3.45% premium to the Dec. 3 closing share price of C$1.45.
"We have a fairly large budget for next year," John Thompson, president and chief executive officer, said in an interview with Prospect News. The company wants to "fast-track" its Elizabeth Gold Property, and "to do that, we need financing."
Thompson noted that Sona's stock has "moved up a fair bit" recently, but he still was hoping for better terms for the deal.
"Nobody is ever happy with terms," he said. However, "the deal is probably well-priced with a bit of a discount."
Given that Sona is a junior company with no revenue, he said that "this is our [fund-raising] method."
Settlement is expected Dec. 15.
Proceeds will be used for exploration, working capital and general corporate purposes.
Vancouver, B.C.-based Sona is a gold exploration company.
Stephanie N. Rotondo contributed to this article
| Issuer: | Sona Resources Corp.
|
| Issue: | Flow-through units of one flow-through common share and one half-share warrant, units of one common share and one half-share warrant
|
| Amount: | C$5 million
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.50
|
| Agent: | Stonecap Securities Inc.
|
| Announcement date: | Nov. 19
|
| Pricing date: | Dec. 6
|
| Stock symbol: | TSX Venture: SYS
|
| Stock price: | C$1.45 at close Dec. 3
|
| Market capitalization: | C$27.4 million
|
|
|
| Flow-through units
|
| Amount: | C$2 million
|
| Units: | 1.6 million
|
| Price: | C$1.25
|
|
|
| Units
|
| Amount: | C$3 million
|
| Units: | 2,727,273
|
| Price: | C$1.10
|
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