Dorato increases bought deal to $10.47-millionDorato increases bought deal to $10.47-million
2010-01-12 18:08 ET - News Release
Mr. Keith Henderson reports
DORATO RESOURCES INC. ANNOUNCES INCREASE IN BOUGHT DEAL FINANCING
Dorato Resources Inc. has entered into a revised agreement with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Canaccord Financial Ltd. to purchase, on a bought deal basis, 9,971,850 units in the capital of the company at $1.05 per unit for gross proceeds to Dorato of $10,470,443. Each unit comprises one common share and one-half of one common share purchase warrant of the company. Each warrant entitles the holder to purchase one additional common share of the company at a price of $1.65 per common share for a period of 18 months following the closing date.
The offering is anticipated to close on or about Jan. 26, 2010, and is subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The common shares and warrants comprising the units issued under the offering will be subject to a four-month-and-one-day hold period commencing on the closing date under applicable securities legislation. Units will be available for sale to qualified offshore investors and to accredited investors in all of the provinces of Canada.
Proceeds from the offering will be used for exploration of the Cordillera del Condor gold district in northern Peru and for general working capital and corporate purposes.
The underwriters will receive a cash commission of 4.5 per cent of the gross proceeds raised in the offering. The underwriters will also receive compensation options equal to 9.5 per cent of that number of units issued in connection with the offering. Each compensation option will entitle an underwriter to purchase one unit of the company at the unit price, subject to regulatory approval, for a period of 18 months following the closing date.
As previously announced, Dorato will also be conducting a concurrent non-brokered private placement of up to 4,761,904 additional units for gross proceeds of up to $5-million on the same terms as the units to be issued pursuant to the offering.
We seek Safe Harbor.