private placement closed today-funds raised at $.34 with a half warrant at $.50.....It will be interesting to see if the share price lanquishes until the 4 month hold expires on or about September 6th.
May 6, 2011
Channel Resources Announces Closing of $7 Million Bought Deal Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.
Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to announce that it has completed its previously announced "bought deal" private placement (the "Private Placement") of 20,590,000 units (the "Units") for gross proceeds of $7,000,600, including 5,880,000 units issued pursuant to the exercise of the underwriter's over-allotment option. The Units were sold pursuant to an underwriting agreement entered into between Wellington West Capital Markets Inc. (the "Underwriter") and the Company. The Units were issued at a price of
.34 per Unit, each Unit consisting of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share at a price of
.50 for a period of 24 months from the date hereof.
The Underwriter was paid a cash fee equal to 7% of the gross proceeds from 20,440,000 Units and was issued 1,430,800 broker warrants (the "Broker Warrants"). Each Broker Warrant will be exercisable at any time to acquire one Common Share at a price of
.40 for a period of 24 months from the date hereof.
Channel plans to use the net proceeds from the Private Placement to advance the Company's Tanlouka Gold Project in Burkina Faso, and for general corporate purposes.
The offering is subject to the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange.
The securities will be subject to a resale restriction for a period of four months plus one day, expiring on September 7, 2011. |
