Tasman Metals (TSM-V) Announces First Tranche Private Placement Closing and Oversubscription
Feb 11, '14 - News Release
Tasman Metals Ltd., further to its news release of Jan. 22, 2014, has closed the first tranche of its private placement financing and has issued 3,875,863 units at a price of $1.10 per unit for gross proceeds of $4,263,449.30. Each unit consists of one common share and one non-transferable common share purchase warrant. Each non-transferable common share purchase warrant exercisable at a price of $1.50 per common share for a period of three years expiring on Feb. 11, 2017. The net proceeds of the private placement are expected to be used to advance work on the company's Norra Karr and Olserum projects and for general working capital purposes.
The company has paid finders a cash commission of 7 per cent of certain proceeds and will issue up to 9,450 non-transferable finders' warrants with each finder's warrant having the same terms as the warrants issued under this private placement financing. The company has also issued 192,000 compensation options exercisable into units to one finder with each unit having the same terms as the units issued under this private placement financing.
Under the first tranche closing, Mark Saxon, president, chief executive officer and a director of the company, has purchased 10,000 units for gross proceeds of $11,000. Mr. Saxon now holds approximately 4.19 per cent of the issued and outstanding shares of the company on a non-diluted basis. Robert Atkinson, a director of the company, has purchased 50,000 units for gross proceeds of $55,000. James Powell, vice-president of corporate development for the company, has purchased 23,000 units for gross proceeds of $25,300.
The securities issued under the private placement will be subject to a four-month hold period expiring on June 12, 2014.
The company anticipates closing a second tranche of its private placement financing in March. The second tranche is intended to include two TSX Venture Exchange-listed issuers, Caymus Resources Inc. and Ava Resources Corp. It is anticipated that Caymus and Ava will collectively subscribe for approximately 1,032,102 units in the second tranche. Caymus and Ava have announced their intentions to wind up their operations after their subscription in the second tranche and to distribute the units to their shareholders outside the United States (and cash is lieu of units to their shareholders outside the United States) in liquidation. The closing of Caymus's and Ava's proposed transactions is subject to a number of conditions, including but not limited to, the receipt of all requisite regulatory approvals, including final exchange acceptance, and the approval of the shareholders of each of Caymus and Ava. As a result of Caymus's and Ava's winding-up transactions, it is anticipated that, on closing of the second tranche, Mr. DeMare, an officer, director and shareholder of the company who is also a director and shareholder of both Caymus and Ava, will acquire 3,154 units as a result of his shareholdings in Caymus and 1,502 units as a result of his shareholdings in Ava.
Caymus's and Ava's subscription in the second tranche will result in the private placement financing being oversubscribed by 367,511 units for additional gross proceeds of $404,262. Subject to regulatory approval, finders' fees consisting of cash and units may be paid in connection with the second tranche closing. |
