American Manganese to file short-form prospectusAMERICAN MANGANESE INC.: SHORT FORM PROSPECTUS FILING
American Manganese Inc. has received clearance to file its final short-form prospectus for its public offering of units to be sold on a best-efforts basis in the provinces of British Columbia, Alberta and Ontario at a price of 32 cents per unit. The offering will be conducted through Pope & Company Ltd., to raise gross proceeds of $882,522 through the sale of 2,757,880 units.
Each unit will consist of one common share in the capital of the company and one transferable common share purchase warrant. Each warrant will entitle the holder to acquire one common share at a price per common share of 48 cents for a period of 24 months following the date of closing of the offering. In addition, the company has granted the agents an overallotment option to increase the size of the offering by 15 per cent on the same terms.
The option may be exercised in whole or in part, at any time up to the closing date of the offering. The company has agreed to pay the agent an 8-per-cent cash commission, as well as compensation options entitling the agent to purchase that number of units of the company that is equal to 8 per cent of the aggregate number of units sold under the offering at an exercise price of 32 cents per unit for a period of 24 months following the closing date of the offering. The closing of the offering is expected to occur on June 4, 2010, or on such date as the company and the agent may agree.
The net proceeds from the sale of the units will be used for advancing the prefeasibility study on the company's Arizona Manganese project, including diamond drilling and metallurgical testing, as seen in the table.
Geology work and drilling $150,000Metallurgical testing and process design $50,000Upcoming BLM fees and option payments to patent holders $250,000Working capital $211,920
----------
In other words,what would have been up to a $5 million PP has shrunk to $900,000. A shame.