Lakeland Resources (LK-V) March 19, '14 increases private placement to $2.83-million over-subscribed. The brokered private placement previously announced on Feb. 24, 2014, has been oversubscribed, and Lakeland Resources Inc. has added a non-brokered component to the financing. The company had engaged Secutor Capital Management Corp. to act as lead agent in connection with a private placement of up to three million flow-through units at a price of 25 cents per FT unit and up to 5,952,380 units at 21 cents per unit for gross proceeds of up to $2-million. The brokered placement has been amended to 5,580,000 FT Units and 5,883,795 Units for gross proceeds of $2,630,596.95. The Company will also close on a non-brokered private placement of 305,000 FT Units and 589,000 Units for gross proceeds of $199,940.The total brokered and non-brokered financings will provide gross proceeds of $2,830,536.95
Each FT Unit will consist of one flow-through common share and one half of one non flow-through common share purchase warrant in the capital of the Company. Each whole share purchase warrant (a "Warrant") is exercisable into one common share of the Company for a period of 12 months from closing at a price of $0.30 per common share. Each Unit will consist of one common share and one warrant. Each share purchase warrant (a "Warrant") is exercisable into one common share of the Company for a period of 12 months from closing at a price of $0.30 per common share.
On closing the Company will grant to the Agent an over-allotment option to increase the size of the offering by 20% of the FT Units and Units that are purchased under the private placement. The option is exercisable in whole or in part for a period of 30 days from closing on the same terms as set forth above solely to cover over-allotment.
The Company will pay to the Agent a cash commission of 8% of the gross sales of FT Units and Units and issue to the Agent 8% of the number of FT Units and Units sold in Compensation Options, with each Compensation Option being exercisable for 12 months. The Compensation options for the FT Units are exercisable at a price of $0.25 per share and the options for Units at $0.21 per share. Finder's fees may also be payable on the non-brokered portion of the financing in compliance with the TSX Venture Exchange (Exchange) policies.
All the securities issuable will be subject to a four-month hold period from the date of closing. The private placement is subject to the approval of the Exchange. The proceeds received from the FT Units will be used by the Company to incur qualified Canadian Exploration Expenses and the proceeds raised by the issuance of Units will be utilized for exploration of the Company's uranium projects in the Athabasca Basin, corporate development and general and administrative purposes. |
