Key points
- The placement comprises up to 20 million units priced at 15 cents per unit, each unit consisting of one common share and one-half warrant.
- Each full warrant entitles the holder to buy one common share at 20 cents within two years of closing, and the placement closes upon receipt of regulatory approval.
- Hunter Wise Securities LLC, Jennings Securities Ltd. and Jones, Gable & Company Limited are expected to receive combined finder’s fees of $46,880 and 233,900 broker warrants.
- President and CEO Pierre Leveille said the placement reflects confidence in Afri-Can’s upcoming diamond sampling program on block J in Namibia.
Afri-Can Marine Minerals Corp. has replaced the private placement previously announced in Stockwatch on Aug. 2, 2007, with a new $2.5-million private placement of equity on revised terms. Afri-Can presently has firm commitments for $2.3-million and has the right to an overallocation allotment of $500,000 for a total equity placement of up to $3-million. The placement will close upon receipt of regulatory approval.
Pierre Leveille, president and chief executive officer of Afri-Can, stated, “Although adverse market conditions have necessitated a price adjustment, we view the placement as a strong vote of confidence in our upcoming diamond sampling program on block J in Namibia.”
The private placement, including an overallocation allotment, will comprise a maximum of 20 million units priced at 15 cents per unit. Each unit will comprise one common share and one-half warrant. Each full warrant will entitle the holder to purchase one common share at 20 cents within a period of two years from the date of closing. The common shares and warrants comprising the units are subject to a holding period of four months following the closing date of the placement. In connection with the placement, Hunter Wise Securities LLC is expected to receive a finder’s fee of $20,000 and 62,500 broker warrants; Jennings Securities Ltd. is expected to receive a finder’s fee of $4,880 and 24,400 broker warrants; and Jones, Gable & Company Limited is expected to receive a finder’s fee of $22,000 and 147,000 broker warrants. The broker warrants will have the same terms and conditions as the warrants that form part of the units described above. The private placement is subject to regulatory approval.
