Business
Kelt increases equity financing to $132.2 million
CALGARY , March 5, 2014 /CNW/ - ("KEL" - TSX) - Kelt Exploration Ltd. ("Kelt" or the "...
About this update from Kelt Exploration Ltd.
[{"type":"text","content":"\n\n\nCALGARY, March 5, 2014 /CNW/ - (\"KEL\" - TSX) - Kelt Exploration Ltd. (\"Kelt\" or the \"Company\") has agreed to\n increase the brokered equity financing announced earlier today.\n\n\nRevised Brokered Private Placement\n\n\nKelt has entered into a revised agreement with a syndicate of\n underwriters led by Peters & Co. Limited (collectively the\n \"Underwriters\"), pursuant to which the Underwriters have agreed to\n purchase for resale to the public, on a bought deal private placement\n basis, 8.5 million common shares of Kelt at a price of $11.60 per\n common share, resulting in gross proceeds of $98.6 million and in\n addition, the Underwriters have agreed to sell to the public, on a\n guaranteed agency basis, 1.53 million common shares (increased from\n 730,000 common shares) of Kelt on a \"flow-through\" basis in respect of\n Canadian development expenses at a price of $12.75 per flow-through\n common share resulting in additional gross proceeds of $19.5 million\n (increased from $9.3 million).\n\n\nKelt has also granted the Underwriters an option, exercisable for a\n period commencing at closing of the offering and ending 30 days\n following closing of the offering, to purchase an additional 1.275\n million common shares at the same common share offering price of $11.60\n per common share, which if exercised, would increase the common share\n offering gross proceeds by $14.8 million. The financing is expected to\n close on or around March 25, 2014.\n\n\nNon-brokered Private Placement\n\n\nIn conjunction with the aforementioned brokered private placement, Kelt\n has agreed to issue to certain directors, officers and employees of the\n Company, on a non-brokered basis, an additional 1.105 million common\n shares of Kelt on a \"flow-through\" basis in respect of Canadian\n development expenses at a price of $12.75 per flow-through common\n share, resulting in additional proceeds of $14.1 million. The\n non-brokered private placement will close concurrently with the closing\n of the brokered private placement on or around March 25, 2014.\n\n\nPrivate Placements\n\n\nNet proceeds from these private placement equity offerings\n (collectively, the \"Private Placements\") will be used to partially\n finance the increased 2014 capital expenditure programs and for general\n working capital purposes.\n\n\nKelt shall, pursu...