Planet Exploration closes $6.02-million bought deal
Planet Exploration Inc PXI
Shares issued 14,947,472 Dec 16 close $1.37
Wed 17 Dec 2003 News Release
Mr. Ranjeet Sundher reports
PLANET EXPLORATION INC.: $6MM FINANCING CLOSED- GOLDCORP INCREASES
INVESTMENT IN PLANET
Planet Exploration has closed its previously announced (see news in
Stockwatch dated Nov. 4, 2003) bought-deal financing of $6.02-million (4.3
million units). Goldcorp provided the lead order for the financing at
$2.52-million, representing 42 per cent of the total financing. Goldcorp
has increased its ownership of Planet from 6 per cent prior to the closing
of this financing to an ownership position of 13.44 per cent of Planet's
currently outstanding shares, and is Planet's partner in the Sidace Lake
gold project.
The units were sold at a price of $1.40 per unit, with each unit consisting
of one common share and one non-transferable common share purchase warrant.
Each warrant entitles the holder to purchase one common share at a price of
$2.00 for 24 months from closing. If at any time after six months, the
trading price of the company's shares close at a price equal to, or higher
than, $3 per share for a consecutive period of 20 trading days, the company
will be entitled to force conversion of the warrants.
Haywood Securities acted as underwriter and received a 6-per-cent cash
commission and warrants to purchase 215,000 units at a price of $1.40 per
unit exercisable for 24 months from closing. All of the securities will be
subject to a four-month hold period in Canada following closing.
Net proceeds will be used to finance exploration on the company's assets,
including the Sidace Lake gold project in Ontario, the company's Mongolian,
Mexican and China mineral properties, and for general working capital
purposes.
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