Highway 50 Gold (HWY-V) Feb 6, '14 increases financing to $2.6-million from $900,000
Highway 50 Gold Corp. has increased the size of its previously announced non-brokered private placement from gross proceeds of $900,000 to up to $2.6-million through the sale of 7,027,025 units at a revised purchase price of 37 cents per unit. Each unit will now consist of one common share of the company and one non-transferable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share of the company at an exercise price of 60 cents per warrant share for a reduced exercise period of 12 months following the closing of the offering.In connection with the offering, the company will pay to arm's-length finders a finders' fee equal to 7 per cent of the gross proceeds of the offering, payable in cash or units at the election of the finders. In addition, the finders will receive finder options exercisable for a period of 12 months following the closing date to acquire such number of common shares of the company as is equal to 7 per cent of the number of units sold under the offering, at a purchase price of 45 cents per finder share.
On Dec. 20, 2013, the company also announced that it had reached an agreement with Regulus Resources Inc., whereby the company will grant to Regulus an option to earn a 50-per-cent interest in the company's Golden Brew property. Regulus had also agreed to purchase two million units in the company for gross proceeds of $900,000 on the terms previously announced. As a result of the revised terms of the offering, the total purchase price payable by Regulus for the two million units will reduce from $900,000 to gross proceeds of $740,000 issuable on the terms set out in this press release, and Regulus will no longer receive a pre-emptive right in future financings conducted by the company. The company and Regulus are proceeding to finalize the terms of the formal option agreement.
The offering and the grant of the option are subject to the acceptance of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a hold period expiring four months and one day following the closing date.
The net proceeds from the offering will be primarily used for further development of the company's Porter Canyon property and for general working capital purposes. |
