$30m bought DealWhy do a $30m bought deal when you have $20m in the bank?? Are they worried about a takeover too early and want some gunpowder to fight back? Any thoughts? Will they expand drilling to new zones?
Levon Resources Ltd. Announces CAD$30 Million Bought Deal Financing
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, April 11 /CNW/ - Levon Resources Ltd. (the "Company")(TSXV: LVN) is pleased to announce that it has entered into an agreement with asyndicate of underwriters led by Canaccord Genuity Corp. and includingJennings Capital Inc. and Macquarie Capital Markets Canada Inc. (the"Underwriters"), pursuant to which the Underwriters have agreed topurchase, on a bought deal basis, pursuant to a short form prospectus,15,400,000common shares (the "Common Shares") of the Company at a price ofCAD$1.95per share for gross proceeds of CAD$30,030,000 (the "UnderwrittenOffering").? In addition, the Company will grant the Underwriters anover-allotment option, exercisable for a period of up to 30 days afterthe closing of the Underwritten Offering, to purchase from the Companyup to an additional 2,310,000common shares at CAD$1.95 per share to cover over-allotments (the"Over-Allotment Option", and together with the Underwritten Offering,the "Offering").
The Underwriters will receive a cash commission of 5% of the grossproceeds raised, and share purchase warrants entitling the Underwritersto purchase, at a price of $1.95 per share within 18 months afterclosing of the Offering, common shares of the Company equal to 5% ofthe aggregate number of securities sold pursuant to the Offering.
The Company intends to use the net proceeds of the Offering to fund theexploration and development of the Company's Cordero project in Mexicoand for general corporate purposes.
Closing of the Offering is anticipated to occur on or before May 10,2011 and is subject to certain conditions including, but not limited tothe receipt of applicable regulatory approvals including approval ofthe TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitationof an offer to buy nor shall there be any sale of any of the CommonShares in any jurisdiction in which such offer, solicitation or salewould be unlawful.? The Common Shares have not been and will not beregistered under the United States Securities Act of 1933, as amended(the "U.S. Securities Act") or any state securities laws and may not beoffered or sold within the United States or to, or for the benefit of,U.S. persons (as defined in Regulation S under the U.S. Securities Act)unless registered under the U.S. Securities Act and applicable statesecurities laws or pursuant to an exemption from such registrationrequirements.
About Levon Resources Ltd.:
Levon is a junior gold and precious metals exploration company exploringthe Cordero silver, gold, zinc and lead project near Hidalgo DelParral, Chihuahua, Mexico. The Norma Sass and Ruf claims located nearthe Pipeline gold deposit, which is being mined and explored by BarrickGold Corporation in the heart of the Cortez Gold Trend in LanderCounty, Nevada, USA. The Company also holds key land positions atCongress, BRX, and Wayside in the productive Bralorne Gold camp ofBritish Columbia, Canada.
LEVON RESOURCES LTD.
"Ron Tremblay"
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Ron Tremblay
President and CEO