Winspear offering prices set
Winspear Resources Ltd WSP
Shares issued 39,238,388 Oct 12 close $2.52
Tue 12 Oct 99 News Release
Mr. Randy Turner reports
Further to the company's news release dated Sept. 27, 1999 (Stockwatch,
Sept. 28), the company and Deutsche Bank Securities Ltd., Canaccord Capital
Corporation and Yorkton Securities Inc. (collectively the agents) have
agreed that the offering prices of each of the Class A special warrants and
Class B special warrants will be $2.55 for total proceeds of approximately
$14-million (Canadian). The exercise price for each warrant (as hereinafter
defined) will be $2.75 per share. It is anticipated that closing of the
transaction will take place on or about Oct. 22, 1999. Approximately
$2-million (Canadian) of the transaction will be non-brokered.
Each Class A special warrant will be convertible into one flow-through
common share and one-quarter of one common share-purchase warrant. Each
Class B special warrant will be convertible into one non-flow-through
common share and one-half of one warrant. One warrant will entitle the
holder to purchase one common share at any time prior to 12 months from the
earlier of receipt of a final prospectus qualifying the common shares and
warrants issuable upon exercise of the Class A special warrants and Class B
special warrants (collectively the securities) and 18 months following
closing.
On closing, the company will pay agents' fees comprised of: 6 per cent of
the gross proceeds in cash; and options (the agents' options) to acquire,
in total, a number of units (the agents' units), each agents' unit
comprising one common share and one-half of one warrant, equal to the
number of special warrants sold by the agents. The purchase price for the
agents' units is $2.55 per agents' unit. The warrant to be issued upon the
exercise of an agents' unit will have the same terms and conditions as the
warrants to be issued to the investors.
Fifty per cent of the net proceeds from the sale of the Class B special
warrants and interest earned will be held in escrow until a receipt has
been issued for a final prospectus qualifying the securities and the
agents' options in each Canadian jurisdiction where purchasers of the
special warrants reside (collectively the receipt). If the receipt has not
been issued before 120 days after closing, the company will pay a penalty
to the holders of the special warrants consisting of: (a) for each Class A
special warrant, an additional one-quarter of one warrant, making the total
entitlement one common share and one-half of one warrant; and (b) for each
Class B special warrant, an additional 0.10 common share and an additional
0.05 warrant, making the total entitlement 1.1 common shares and 0.55 of
one warrant.
Proceeds will be used in connection with expenditures on the company's
Camsell Lake property, NWT, and to provide working capital.
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