Business
Balmoral Announces $4.0 Million Bought Deal, Flow-Through Private Placement
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNIT...
About this update from Barranco Gold Mining Corp.
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\nTSX: BAR / OTCQX: BALMF\n\n\n\nVANCOUVER, June 4, 2014 /CNW/ - Balmoral Resources Ltd. (TSX:BAR) (\"Balmoral\" or the \"Company\") announces that it has entered into an agreement with Canaccord Genuity Corp. (\"Canaccord\"), pursuant to which Canaccord will purchase, as underwriter, 2,290,000 flow-through common shares of the Company (the \"Flow-Through Shares\") at a price of $1.75 per Flow-Through Share on a bought deal private placement basis for gross proceeds of $4,007,500 (the \"Offering\"). This represents a 59% premium to the 7 day volume weight average trading price of Balmoral common shares on the TSX. The Company has also granted Canaccord an option to purchase from the Company up to an additional 290,000 Flow-Through Shares (the \"Over-Allotment Shares\" and together with the Flow-Through Shares, the \"Offered Securities\") through the Offering at a price of $1.75 per Over-Allotment Share, exercisable at least 48 hours prior to the closing date of the Offering.\n\nThe proceeds raised from the Offering will be used by the Company for further exploration of its Detour Gold Trend Project and other properties located in the Province of Quebec.\n\nClosing of the Offering is anticipated to occur on or before June 20, 2014. Closing of the Offering is subject to receipt of regulatory approvals, including the acceptance of the Offering by the Toronto Stock Exchange (\"TSX\"). The Offered Securities will be subject to a four month hold period under applicable securities laws in Canada.\n\nIn consideration of Canaccord's services, the Company has agreed to pay Canaccord a cash commission of 5% of the gross proceeds of the Offering. Canaccord will also receive broker warrants (the \"Broker Warrants\") equal to 6% of the Offered Securities sold pursuant to the Offering. Each Broker Warrant entitles the holder to acquire one common, non-flow-through, share of the Company at a price of $1.25 until the date that is 24 months from the closing of the Offering.\n\nThis news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Sec...