A SWEETHEART of a deal for the financiers....not so good for holders, at least in the short-term....[siempre]
Nuinsco Resources arranges $15-million financing
2006-12-12 08:19 ET - News Release
Mr. Rene Galipeau reports
NUINSCO RESOURCES ANNOUNCES $15 MILLION EQUITY FINANCING
Nuinsco Resources Ltd. has entered into an agreement with Sprott Securities Inc., on behalf of a syndicate of underwriters consisting of Sprott, Octagon Capital Corp. and Raymond James Ltd. (collectively, the underwriters) pursuant to which the underwriters have agreed to purchase from the company 19,231,000 common shares at a price of 78 cents per share on an underwritten private placement basis for a total of $15,000,180.
The underwriters shall also have the option to purchase up to an additional 12.82 million shares at the same issue price of 78 cents per share on the closing date of the offering for an additional $9,999,600. The offering is scheduled to close on or about Dec. 21, 2006, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
The net proceeds of the offering will be used to finance the Minago feasibility study, including a winter drilling program, environmental and production permitting, and further metallurgical studies. Proceeds will also be used to complete the earn-in on the MEL property, with the remaining funds used for general working capital purposes.
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