Deep pockets at PDAC2014 or times are a-changings?
Discovery Harbour Resources (DHR-V) April 25, '14 has completed a non-brokered private placement of 8.1 million units of the company at 10 cents per unit for gross proceeds of $810,000. Each unit comprises one common share of the company and one-half of one common share purchase warrant, with each whole warrant being exercisable into one share at an exercise price of 10 cents until April 24, 2017. The expiry date of the warrants may be accelerated in the event the volume-weighted average trading price of the company's shares is greater than 30 cents for 20 consecutive trading days, in which case the company may provide notice to the warrantholders to exercise their warrants within 30 days. Richard B. Gilliam, a director and significant shareholder of the company, acquired the units directly and was the sole subscriber under the financing. On closing of the financing, Mr. Gilliam held a total of 25,490,915 shares, representing approximately 49.6 per cent of the outstanding shares on an undiluted basis. Mr. Gilliam also held a total of 14,446,000 warrants of the company. Assuming the exercise of 14,446,000 warrants, Mr. Gilliam would hold a total of 39,936,915 shares, representing approximately 58.9 per cent on a diluted basis.The company did not pay any finders' fees in connection with the financing.
All of the securities issued in connection with this private placement will be subject to a hold period expiring Aug. 25, 2014.
Proceeds from the private placement are expected to be used to finance exploration and development of the company's Wabassi project, for the identification and acquisition of new projects if appropriate, and for general working capital purposes.
We seek Safe Harbor. |
