Romarco arranges $20.52-million private placement
2009-02-12 09:41 ET - News Release
Ms. Diane Garrett reports
ROMARCO ANNOUNCES $20,520,000 BOUGHT DEAL PRIVATE PLACEMENT FINANCING
Romarco Minerals Inc. has entered into a bought-deal private placement offering with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd., and including Paradigm Capital Inc. and GMP Securities LP.
Under the agreement, the underwriters will purchase 54 million units of the company at a price of 38 cents per unit for gross proceeds of $20.52-million.
Each unit will consist of one common share of Romarco and one-half of one common share purchase warrant, each full warrant being exercisable to acquire one common share of Romarco at a purchase price of 60 cents for a period of 24 months following the closing date.
The company has agreed to grant the underwriters an option to purchase up to an additional 8.1 million units at a price of 38 cents per unit for additional total gross proceeds to Romarco of $3,078,000, exercisable at any time in whole or in part up to 48 hours prior to the closing date.
If this option is exercised in full, the total gross proceeds to Romarco will be $23,598,000.
Romarco will use the net proceeds from the offering to finance the continued exploration and development of the Haile gold mine, and for general corporate and working capital purposes.
The offering is expected to close on March 3, 2009, and is subject to certain conditions, including the receipt of all necessary approvals, including the approval of the Toronto Venture Exchange. The unit shares, the warrants and the common shares issuable on the exercise of the warrants will be subject to a hold period of four months plus one day after the closing date.
The underwriters will receive a commission of 6.0 per cent of the gross proceeds raised in the private placement in cash. The underwriters will also receive compensation options equal to 6.0 per cent of that number of units issued in connection with the private placement. Each compensation option will entitle the underwriters to purchase one unit of the company at the offering price for a period of 24 months following the closing date.
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