Strateco Resources raises C$13 million via placements of shares, units

Offerings fund exploration of the Matoush uranium exploration project

By Devika Patel

Knoxville, Tenn., Feb. 29 - Strateco Resources Inc. said it settled a C$10 million private placement of stock. The deal priced for C$7 million with a C$3 million greenshoe on Feb. 16. Primary Capital Inc. was the lead agent of a syndicate, which included Versant Partners Inc., Dundee Securities Ltd., Stonecap Securities Inc, and Haywood Securities Inc. The company also sold C$3 million of units in a non-brokered private placement.

The company sold flow-through common shares at C$0.65 per Quebec share and C$0.60 per federal share. The prices per share are 20.37% and 11.11% premiums to C$0.54, the Feb. 15 closing share price. A total of 7,692,320 Quebec shares and 8,333,300 federal shares were sold in the deal.

Strateco also sold 6 million units of one common share and a half-share warrant at C$0.50 per unit to The Sentient Group. Each full warrant is exercisable at C$0.65 until March 1, 2014. The strike price is a 20.37% premium to the Feb. 15 closing share price.

Proceeds will be used for exploration of the Matoush uranium exploration project in northern Quebec.

Montreal-based Strateco is a uranium exploration company.

Issuer:	Strateco Resources Inc.
Issue:	Flow-through common shares, units of one common share and a half-share warrant
Amount:	C$12,999,988 (including C$3 million greenshoe)
Pricing date:	Feb. 16
Settlement date:	Feb. 29
Stock symbol:	Toronto: RSC
Stock price:	C$0.54 at close Feb. 16
Market capitalization:	C$72.5 million
Quebec shares
Amount:	C$5,000,008
Shares:	7,692,320
Price:	C$0.65
Warrants:	No
Agent:	Primary Capital Inc. (lead), Versant Partners Inc., Dundee Securities Ltd., Stonecap Securities Inc, and Haywood Securities Inc.
Federal shares
Amount:	C$4,999,980
Shares:	8,333,300
Price:	C$0.60
Warrants:	No
Agent:	Primary Capital Inc. (lead), Versant Partners Inc., Dundee Securities Ltd., Stonecap Securities Inc, and Haywood Securities Inc.
Units
Amount:	C$3 million
Units:	6 million
Price:	C$0.50
Warrants:	One half-share warrant per unit
Warrant expiration:	March 1, 2014
Warrant strike price:	C$0.65
Investor:	Sentient Group
Agent:	Non-brokered

© 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.