Champion Minerals Inc. announces $20 million bought deal financing
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TORONTO, Jan. 14 /CNW/ - Champion Minerals Inc. (TSX:CHM, FSE:PO2) (the "Company" or "Champion") announced today that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters (collectively, the "Underwriters"), which have agreed to purchase, on a bought deal private placement basis, 8,000,000 shares of the Company (the "Shares") at a price of C$2.50 per Share (the "Issue Price"), for aggregate gross proceeds of C$20,000,000.
The Company has granted the Underwriters an over-allotment option to purchase additional Shares to raise additional gross proceeds of up to $3,000,000, exercisable no later than 48 hours prior to the closing.
Closing of the offering is anticipated to occur on or before February 3, 2011 and is subject to receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.
The net proceeds of the financing will be used to fund the exploration and development of the Company's Fermont Iron Property, as well as for general corporate purposes.