TORONTO, ONTARIO--(Marketwired - Sept. 17, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Energizer Resources Inc. (TSX:EGZ)(OTCQX:ENZR)(FRANKFURT:YE5) ("Energizer" or the "Company") is pleased to announce it has engaged GMP Securities L.P. as lead agent (the "Agent") to conduct a brokered private placement, on a best efforts basis, of common shares (the "Common Shares") of the Company (the "Offering") to raise gross proceeds of up to US$4,800,000 with an issue price of US$0.14 per Common Share (the "Offering Price"). The Offering Price was negotiated between the Company and the Agent, in the context of the market price for shares of the Company following the engagement of the Agent in respect of the Offering, and prior to the recent appreciation of the Company's share price.
In connection with the Offering, Energizer will pay to the Agent a cash fee equal to up to 6% of the gross proceeds raised under the Offering and will issue to the Agent warrants (the "Broker Warrants") to purchase that number of Common Shares equal to 6% of the aggregate number of Common Shares sold in the Offering. Each Broker Warrant will have a term of 24 months following its issue and be exercisable at the same exercise price as the Common Shares.
All securities issued in connection with the Offering will be subject to a minimum six month hold period. The closing of the Offering is subject to the final approval of the Toronto Stock Exchange (the "TSX") and other conditions, including satisfactory due diligence. The closing of the Offering is expected to be on or around September 24, 2014.
The net proceeds from the Offering will be used primarily to fund the production of additional graphite concentrate samples from the Molo Project in Madagascar for distribution to potential offtake groups and end users of graphite which the Company are in advanced discussions with and for general working capital purposes.
The Company has obtained conditional approval from the TSX for the listing of all Common Shares issuable pursuant to the Offering (including those underlying the Broker Warrants). Listing will be subject to satisfying all of the requirements of the TSX.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.