Business
Laramide Resources announces institutional funding transaction with The Lind Partners
TORONTO , Aug. 15, 2013 /CNW/ - Laramide Resources Ltd. ("Laramide" or the "Company")...
About this update from Laramide Resources Ltd.
[{"type":"text","content":"\n\n\nTORONTO, Aug. 15, 2013 /CNW/ - Laramide Resources Ltd. (\"Laramide\" or the \"Company\") (TSX/ASX:LAM) is pleased to announce that it has entered into a financing transaction\n with the Canadian Special Opportunity Fund, L.P., a fund managed by The\n Lind Partners Canada, LLC, (together \"Lind\").\n\n\nOn August 14, 2013, Lind subscribed for an unsecured subordinated\n convertible security of Laramide in the principal amount of C$300,000\n (the \"Convertible Security\") and 200,000 warrants. The Convertible Security bears no interest and\n is convertible into 600,000 common shares of Laramide within 18 months\n from the date of issuance. Each warrant will entitle Lind to convert\n into one common share of Laramide, exercisable within 36 months of\n issuance at C$0.75 per share. The Convertible Security can also be\n redeemed by Lind at any time commencing upon the earlier of (i) the\n date six (6) months following the date of the Convertible Security;\n (ii) the date on which the Company terminates the Convertible Security\n in accordance with its terms; or (iii) in certain other circumstances\n provided for in the agreement. The Convertible Security is subject to\n standard adjustments and anti-dilution provisions.\n\n\nThe Company also intends to enter into a definitive securities purchase\n agreement (the \"SPA\" or the \"Equity Financing\") with Lind, whereby Lind will invest a minimum of C$2,700,000 up to a\n maximum of C$5,250,000. Subject to certain conditions, Lind would\n subscribe for, and Laramide would agree to issue and sell, a minimum of\n C$2,700,000 of common shares in 18 tranches, approximately every 30\n days. Lind's subscription for each tranche would be in the amount of\n C$150,000 per tranche and the first tranche will be completed on\n closing of the SPA. Laramide and Lind may increase the amount of each\n tranche up to C$300,000, by mutual consent, increasing the maximum\n amount under the SPA to C$5,250,000.\n\n\nLaramide's President and Chief Executive Officer Marc Henderson stated:\n \"This transaction ensures Laramide's key projects will continue to be\n advanced, while at the same time the flexibility of this structure\n provides for near market pricing and dilution control until conditions\n warrant additional funding or the potential receipt of near-term cash\n flow is realized from our U.S. p...