By Devika Patel
Knoxville, Tenn., June 19 - Underworld Resources Inc. said it completed a brokered private placement of units for C$16 million and a non-brokered placement of units for C$550,000. The brokered deal priced for C$14 million with a C$1 million greenshoe on June 2, and the non-brokered placement priced the same day.
In the brokered deal, the company sold 2,415,000 flow-through units at C$1.45 apiece for C$3.5 million and 10 million units at C$1.25 apiece for C$12.5 million. In the non-brokered deal, the company sold 400,000 units and 34,500 flow-through units for C$550,025.
Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable at C$1.60 for one year.
Each flow-through unit consists of one flow-through common share and one half-share warrant. Each whole warrant is exercisable at C$1.65 for one year.
The brokered deal was conducted by a syndicate of agents led by Canaccord Capital Corp. and including Axemen Resource Capital and Dundee Securities Corp.
Proceeds will be used for exploration.
Underworld is a junior exploration company based in Vancouver, B.C.
| Issuer: | Underworld Resources Inc.
|
| 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$16,551,775
|
| Greenshoe: | C$1 million
|
| Price: | C$1.25 for units; C$1.45 for flow-through units
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$1.60 for warrants in units; C$1.65 for warrants in flow-through units
|
| Agents: | Canaccord Capital Corp. (lead), Axemen Resource Capital and Dundee Securities Corp. (for C$16,001,750); non-brokered (for C$550,025)
|
| Pricing date: | June 2
|
| Settlement date: | June 19
|
| Stock symbol: | TSX Venture: UW
|
| Stock price: | C$1.43 at close June 2
|
| Market capitalization: | C$65.7 million
|
|
|
| Brokered deal
|
| Amount: | C$16,001,750
|
| Units
|
| Amount: | C$12.5 million
|
| Units: | 10 million
|
| Flow-through units
|
| Amount: | C$3,501,750
|
| Units: | 2,415,000
|
|
|
| Non-brokered deal
|
| Amount: | C$550,025
|
| Units: | 400,000
|
| Flow-through units: | 34,500
|
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