Deal's proceeds slated for exploration of Santo Domingo silver project
By Devika Patel
Knoxville, Tenn., Nov. 5 - Stroud Resources Ltd. said it completed an initial tranche of a non-brokered private placement of units. The company raised C$472,500 in this tranche.
Stroud is selling 35,714,285 units at C$0.07 apiece for C$2.5 million. In the first tranche, the company sold 6.75 million units.
Each unit consists of one common share and one half-share warrant, with each whole two-year warrant exercisable at C$0.12.
The strike price reflects a 20% premium to the Oct. 5 closing share price of C$0.10.
Proceeds will be used for general working capital and to continue exploring the Santo Domingo silver project in Jalisco, Mexico.
Stroud Resources is a resource exploration company based in Toronto.
| Issuer: | Stroud Resources Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$2.5 million
|
| Units: | 35,714,285
|
| Price: | C$0.07
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.12
|
| Agent: | Non-brokered
|
| Bookrunner: | Union Securities
|
| Pricing date: | Oct. 6
|
| Settlement date: | Nov. 5 (for C$472,500)
|
| Stock symbol: | TSX Venture: SDR
|
| Stock price: | C$0.11 at close Oct. 6
|
| Market capitalization: | C$12.1 million
|
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