KLONDEX MINES LTD. ARRANGES $6.1 MILLION PRIV
Klondex arranges 2.75-million-unit private placement
2006-03-09 08:30 ET - News Release
Mr. William Solloway reports
https://www.stockwatch.com/swnet/newsit/newsit_newsit.aspx?bid=B-532077-C:KDX&symbol=KDX&news_region=C
Klondex Mines Ltd. has entered into an agreement with Quest Securities Corp. pursuant to which Quest will act as the company's agent to place, on a best efforts basis, up to 2.75 million units at $2.25 per unit. Quest has the option to increase the offering by up to an additional 500,000 units, the placement of which would result in total gross proceeds of up to $7,312,500 to the company. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share for a period of 18 months from closing at an exercise price of $3.00 per share. The company has the right to accelerate the expiry of the warrants if the common shares of the company close at or above $4.00 for a minimum of 20 consecutive trading days.
Quest will receive a cash commission of 7.0 per cent of the gross proceeds received from the sale of the units. Quest will also receive that number of broker warrants as is equal to 7.0 per cent of the total number of units sold. Each broker warrant will be exercisable to purchase one unit for a period of 18 months from closing at a price of $2.25 per unit.
Proceeds received from the sale of the units will be used to continue the company's continuing work program on the Fire Creek property, Nevada, and for working capital and general corporate purposes.
All securities issued with respect to the private placement will be subject to a hold period of four months from closing. Completion of the private placement is subject to the approval of the TSX Venture Exchange.
We seek Safe Harbor.