Int'l Enexco (IEC-V) closes $2.35-million private placement, Denison Mines (DML-T) has acquired ownership of 3.6 million units of International Enexco Ltd. at a price of 50 cents/share
Nov 29, 2012 - News Release
Further to International Enexco Ltd.'s Oct. 12, 2012, and Nov. 16, 2012, news releases announcing a non-brokered private placement of units at 50 cents per unit for gross proceeds of $2-million, the private placement has been oversubscribed for aggregate proceeds of $2.35-million. All other information from the news release dated Nov. 16, 2012, remains the same.
Denison Mines Corp. subscribed for 3.6 million units of the company at a price of 50 cents per unit for aggregate gross proceeds of $1.8-million. If all of Denison's warrants included in the units were exercised, Denison would own 5.4 million shares of Enexco, which represents approximately 13.9 per cent of the issued and outstanding shares of Enexco.
The proceeds from the private placement will be used for the exploration and development of the Contact copper project in Nevada, to partially finance the company's exploration activities on the Mann Lake uranium project (operated by Cameco Corp.) in Saskatchewan's Athabasca basin in 2013 and for general working capital.
Concurrently with Denison's purchase of units, Denison and Enexco also entered into an ancillary rights agreement. The ARA provides Denison with certain rights, for so long as Denison holds a minimum 5-per-cent interest in the issued and outstanding shares of Enexco. First, the company shall cause one Denison nominee to be appointed to Enexco's board effective upon the closing of the private placement and will nominate one Denison nominee for election to the board at any meeting of shareholders where directors are to be elected. Second, Denison has a pre-emptive right to maintain its shareholding percentage up to a maximum of 9.9 per cent (on a partially exercised basis), subject to regulatory approval, if Enexco issues or proposes to issues any equity securities. Denison also has the right to subscribe for such number of shares sufficient to enable Enexco to meet its financing obligations under the Mann Lake joint venture agreement in the event of a shortfall. The ARA also provides that Denison has the right to appoint one individual to Enexco's technical committee, responsible for providing technical input on the exploration and development plans for the Mann Lake uranium project in the Athabasca basin in Saskatchewan.
In exchange, Denison has agreed in the ARA to vote its shareholding in favour of Enexco management's proposals on matters of routine business and not to tender its shareholding to any takeover bid if Enexco's board has not issued a recommendation in favour of the same.
The company will pay $24,387.50 in finders' fees in connection with this closing, excluding Denison's subscription. All of the securities issuable in the placement are subject to a hold period ending on March 30, 2013.
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