- Canadian Palladium (BULL) is set to raise up to approximately C$3 million in a private placement to fund exploration work at its East Bull property
- The company intends to issue 8,333,400 units at a price of 12 cents each, along with 14,814,900 flow-through shares at a price of 13.5 cents
- Each unit will be comprised of one common share and one common share purchase warrant, exercisable at a price of 18 cents for a period of 24 months
- The proceeds will be used to fund exploration work at the company’s East Bull palladium property in Ontario, as well as for general corporate purposes
- Canadian Palladium (BULL) is currently steady at 14 cents per share
Canadian Palladium (BULL) is set to raise up to approximately C$3 million in a private placement to fund exploration work at its East Bull property.
Under the terms of the placement, which is to be led by Eight Capital, the Vancouver-based company intends to issue up to 8,333,400 units at a price of 12 cents each.
These units will be comprised of one common share in Canadian Palladium and one common share purchase warrant, exercisable at a price of 18 cents per share for a period of 24 months from the date of issuance.
The company also intends to issue 14,814,900 flow-through shares at a price of 13.5 cents each.
Canadian Palladium has granted Eight Capital an over-allotment option to acquire an additional $1 million worth of units or flow-through shares at their respective offering price, which may be exercised either wholly or in part at any time up to 48 hours before the placement closes.
Should Eight Capital elect to fully exercise this option, the aggregate proceeds of the placement will be approximately $4 million.
Eight Capital will also receive a cash commission equal to seven per cent of the total amount raised, along with warrants equal to seven per cent of the total number of units and shares sold. Each of these warrants will entitle Eight Capital to acquire one unit at a price of 12 cents for a period of 24 months.
Canadian Palladium intends to use the proceeds raised under the placement to fund exploration work at its East Bull palladium property near the township of Gerow, Ontario. The property covers 992 hectares where significant precious and base metal mineralisation has already been identified in a number of key zones.
A portion of the proceeds will also be used for general corporate purposes.
Canadian Palladium (BULL) is currently steady at 14 cents per share at 1:31pm EDT.
