Artek arranges $20-million bought-deal financing
Artek arranges $20-million bought-deal financing
2012-10-17 17:00 ET - News Release
Mr. Darryl Metcalfe reports
ARTEK EXPLORATION LTD. ANNOUNCES $20.0 MILLION BOUGHT DEAL FINANCING
Artek Exploration Ltd. has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., and including Cormark Securities Inc., Peters & Co. Ltd., Stifel Nicolaus Canada Inc. and FirstEnergy Capital Corp., pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 3,509,000 common shares at a price of $2.85 per common share and 2,899,000 common shares on a flow-through basis at a price of $3.45 per flow-through common share, for total gross proceeds of approximately $20-million. In addition, the underwriters have been granted an overallotment option, exercisable for a period of 30 days following closing of the offering, to purchase 351,000 common shares for additional gross proceeds of approximately $1-million.
Proceeds of the offering will initially be used to reduce bank indebtedness, thereby freeing up additional borrowing capacity to finance a portion of the corporation's continuing capital program. The flow-through common share proceeds will be used to incur eligible Canadian exploration expenditures that will be renounced to subscribers effective on or before Dec. 31, 2012.
The common shares and the flow-through common shares will be offered in certain provinces of Canada by way of a short-form prospectus. Closing is expected to occur on or about Nov. 9, 2012, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
We seek Safe Harbor.