PP
Pine Point Mining arranges $2-million private placement
2017-08-15 11:15 ET - News Release
Mr. Jamie Levy reports
PINE POINT ANNOUNCES $2 MILLION FINANCING
Pine Point Mining Ltd. has arranged a non-brokered private placement of up to eight million units at a price of 25 cents per unit for gross proceeds of $2-million. Each unit to be issued in the private placement will consist of one common share in the capital of the company and one-half common share purchase warrant. Each full warrant will entitle the holder thereof to purchase one additional common share of the company at a price of 35 cents for a period of two years following the closing of the private placement.
As part of the private placement, Zebra Holdings and Investments Sarl, a company controlled by a trust settled by the late Adolf H. Lundin, will subscribe for four million units of the offering for gross subscription proceeds of $1-million. Upon closing of the $2-million private placement, Zebra as an insider of the company would own 16.38 per cent of the company's outstanding shares on a partially diluted basis assuming the exercise of all warrants held and currently acquired. The financing also had participation by the PowerOne Group, directors and management of the company.
The net proceeds of the private placement will be used for general working capital and to finance the continued evaluation of Pine Point's zinc-lead deposits. It is anticipated that insiders of the company will participate in the private placement on the same terms and conditions as arm's-length subscribers. All securities issued in the private placement will be subject to a statutory four-month hold period. Closing of the private placement is subject to negotiation and execution of definitive documentation and receipt of all regulatory approvals, including approval of the TSX Venture Exchange.