1.90 seems cheap for financing with warrantParticipants that sell above 1.80 are making money dumping their current shares in favor of this, or so it seems.
Fortuna Silver to raise up to $11.4-million privately
2006-12-11 15:15 ET - News Release
Mr. Jorge Durant reports
FORTUNA ARRANGES $11.4 MILLION PRIVATE PLACEMENT
Fortuna Silver Mines Inc. has entered into an agreement with a syndicate of agents co-led by Pacific International Securities Inc. and Salman Partners Inc., and including Sprott Securities Inc., to raise up to $11.4-million by way of a private placement. The agreement provides for the placement of up to six million units priced at $1.90 per unit, with each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share for 18 months from the closing date at a price of $2.30. The company has also granted the agents an overallotment option exercisable at any time prior to closing for the placement of up to an additional six million units. Fortuna will pay the agents a commission of 7 per cent of the gross proceeds of the offering, payable in a combination of cash or units, at the election of the agents. In addition, the agents will receive compensation options equal to 7.5 per cent of the total units sold, with each option exercisable into one common share at a price of $2.30 for 18 months from closing. Closing of the private placement is anticipated to be on Jan. 11, 2007.