underwriterHaven`t posted in a while - sold all my shares, 5 years was enough.
I agree, only person making money is Vic.
Mar 16.07 Acadian Gold Announces Bought Deal $16 Million Private Placement with Northern Securities
Acadian Gold Corporation recently announced that it has entered into an agreement with Northern Securities Inc. in which Northern has agreed to act as lead underwriter on behalf of a syndicate of underwriters, on a bought deal basis, subject to certain conditions, in a private placement of 15,250,000 equity units at a price of $1.05 per Unit resulting in gross proceeds of $16,012,500 to Acadian Gold, prior to consideration of the Over-Allotment Option described below. Each Unit will consist of one common share of Acadian Gold and one-half of one common share purchase warrant. One whole Warrant will entitle the holder to subscribe for one Common Share at $1.35 at any time until the date that is eighteen months from closing.
The net proceeds of the Offering will be used to advance Acadian Gold's zinc-lead mine, the Scotia Mine, into production and for general corporate purposes.
The Agreement and the Offering are subject to receipt of all necessary approvals, including regulatory and stock exchange approvals. The closing is expected to occur on or about March 30, 2007.
This private placement replaces the previously announced proposed debt financing to put the Scotia Mine into production. "After careful consideration of a variety of offers from potential lenders, the company has concluded that the proposed equity financing is the most attractive option for the company to bring the Scotia Mine into production," said Will Felderhof, President and CEO of Acadian Gold. "The various debt financing proposals considered over the past several months included a variety of terms and hidden costs which Acadian Gold considered overly onerous. Such proposals included, variously, requirements for hedging, off-take agreements, and conversion and warrant features and operating constraints that the company considered unacceptable and not in the best interest of shareholders. Acadian Gold came to the conclusion that this equity private placement is a much more favourable way to put the Scotia Mine into production, as it will leave the company with a cleaner balance sheet and unfettered to continue to pursue the growth strategy which has proven successful and rewarding for shareholders to date."
Excellent progress continues to be made with respect to the start-up of the Scotia Mine. Pumping has commenced in the open pit and the processing plant is now being commissioned hydraulically. Pre-production removal of waste material, stockpiling of ore and final commissioning of the plant will commence upon completion of the equity financing.
Before consideration of the Over-Allotment Option below, Acadian Gold has agreed to pay the Underwriters a commission equal to 6.75% of the aggregate gross proceeds and to issue 1,029,375 brokers' warrants to acquire units representing 6.75% of the number of Units issued under the Offering. One Brokers' Unit Warrant will entitle the holder to acquire one unit for $1.05 at any time until the date that is 15 months from Closing. Each Brokers' Unit will consist of one common share and one-quarter common share purchase warrant with each whole Brokers' Underlying Warrant entitling the holder to acquire one common share for $1.35 also exercisable within 15 months of Closing.
Acadian Gold has also granted the Underwriters an over-allotment option to acquire an additional 1,900,000 Units at $1.05 per Unit, which, if exercised in full, would result in additional gross proceeds to Acadian Gold of $1,995,000. If the Over-Allotment Option is exercised in full, the Underwriters will be paid a commission equal to 6.75% of the gross proceeds of the Over-Allotment Option and 134,662 additional Broker Unit Warrants, representing 6.75% of the number of Units issued under the Over-Allotment Option.
All of the securities issued in connection with the Offering will be subject to a four month hold period from the date of issue.
Acadian Gold is a resource company based in Halifax, Nova Scotia, Canada focused on exploring and developing gold and zinc properties in Atlantic Canada.
In addition to exploring and developing zinc properties in Nova Scotia through the Scotia Zinc Project, Acadian Gold is currently focused on developing four advanced gold properties, Beaver Dam, Tangier, Forest Hill and Goldenville, which form the core holdings of the Scotia Goldfields project. All of the four advanced properties host gold resources described in technical reports prepared in compliance with National Instrument 43-101 and are available on www.sedar.com. Acadian Gold is bringing a new approach to the development of Nova Scotia gold deposits by pursuing a multiple mine central processing, managing and servicing strategy.
The principal focus in the Scotia Zinc project is the Scotia Mine which is slated to commence zinc and lead production in Q1-Q2-2007. At a planned rate of production of 700,000 tonnes per year from the open pit, the Scotia Mine is expected to produce 30,000 tonnes of high grade zinc concentrate and 10,000 tonnes of high grade lead concentrate per year. This is equivalent to 39.8 million pounds of zinc and 16.5 million pounds of lead annually. The projected (feasibility study) cost of production is US$0.34 to $0.36/pound zinc equivalent. Please see Press Release No. 16-06, July, 17, 2006 for further details.
Acadian Gold holds a 51% equity interest in Royal Roads Corp. Royal Roads' principal asset is a 16,075 hectare (approximately 32 km x 5 km) mineral property known as the Tulks North property which is strategically located in the centre of the world-class Buchans base metal camp in central Newfoundland, Canada. Royal Roads recently purchased 8,890,953 common shares of Buchans River Ltd. ("Buchans River") (BUV - TSX-V). This represents 53.06% of the outstanding shares of Buchans River. The purpose of the share acquisition was to increase the land position under Acadian Gold's control within the famous Buchans mining camp and increase the potential for finding additional zinc-lead-silver deposits. Acadian Gold's indirect interest in Buchans River is 27%.
Royal Roads' Tulks North property is host to the Daniel's Pond deposit which was discovered by BP Resources Canada Ltd. in 1989. Royal Roads reported last November an inferred resource (Zn cutoff = 2%, S.G. 4.0) of 1.69 million tonnes grading 0.57% copper, 4.40% lead, 8.37% zinc, 196.9 g/t silver and 0.68 g/t gold over an average width of 4.2 metres. Royal Roads is presently conducting a diamond drilling program at Daniel's Pond.