Pacific Rim negotiates $5-million financing
Pacific Rim Mining Corp PFG
Shares issued 21,615,370 May 24 close $4.45
Thu 25 May 2000 News Release
Ms. Catherine McLeod-Seltzer reports
Pacific Rim Mining has entered into an agreement with agents comprising
Haywood Securities Inc. as lead agent, Canaccord Capital Inc. and Loewen
Ondaatje McCutcheon Limited, to privately place up to 1,176,470 million
special warrants priced at $4.25 per special warrant for gross proceeds of
$5-million. This financing includes provision for a maximum
oversubscription of 117,647 special warrants. Closing is subject to
completion of satisfactory due diligence by the agents, completion of
formal documentation and receipt of applicable regulatory acceptances.
Each special warrant to be issued is exercisable without further payment
into a unit consisting of one common share of the company and one-half
warrant. Each full warrant is exercisable to acquire an additional common
share at $5 for one year. The special warrants will be automatically
exercised immediately following the effective date of a prospectus
qualifying the distribution of units in the applicable Canadian
jurisdictions.
The company has agreed to use its best efforts to obtain the receipt(s) for
such prospectus on or before 120 days from the closing of the private
placement. Should the receipt(s) not be received on or before this date,
the company will be required to issue 1.1 units upon conversion of each
special warrant.
The company will receive 50 per cent of the gross proceeds from the special
warrants on the closing of the private placement and will receive the
remaining 50 per cent upon obtaining the prospectus receipt(s).
The agents will receive a commission of 7 per cent of the gross proceeds
and agents' warrants equal to 7 per cent of the special warrants sold
(maximum of 90,588 agents' warrants) exerciseable at a price of $4.25 for
one year from the closing date of the private placement.
The proceeds from the financing will be used to accelerate exploration at
the company's world-class Luicho project, where a 20,000-metre reverse
circulation drill program is scheduled to commence on June 21, 2000, and
for working capital.
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