Mr. Iain Macpherson reports
ELEMENTAL MINERALS LIMITED ANNOUNCES EXERCISE OF OVER-ALLOTMENT OPTION
Elemental Minerals Ltd.'s underwriting syndicate of its recently closed initial public
offering has exercised in full its overallotment option to purchase
an additional 6,370,500 ordinary shares, raising gross proceeds of
$8,026,830 (approximately $7.7-million (Australian)). The underwriting syndicate
was co-led by BMO Capital Markets and Renaissance Capital, and included
Stifel Nicolaus Canada Inc., National Bank Financial Inc., RBC Capital
Markets and CIBC.
Under the previously announced offering of 42.47 million ordinary shares
at a price of $1.26 (approximately $1.25 (Australian)) per
ordinary share for total gross proceeds of $53,512,200, the company granted the underwriters an option to purchase up to an
additional number of ordinary shares equal to 15 per cent of the number of
ordinary shares sold under the offering at any time during the 30-day
period immediately following the closing of the offering. The total
number of ordinary shares in issue following the exercise of the
overallotment will be 222,226,108.
Commenting on the exercise of the overallotment, Iain Macpherson, chief
executive officer of the company, said: "The exercise of the
overallotment option highlights strong shareholder support for
Elemental despite the market downturn. The company is now well funded,
having raised $57,478,738 of net proceeds, which puts us in a good
position that allows us to focus on achieving our previously stated
project development milestones, including delivery of the
prefeasibility component of the DFS by end Q1 2012 and completion of
the DFS by end Q1 2013. The Elemental executive is delighted with the
outcome of the company's listing on the TSX and share placement, which
has generated the funds required to see us through the DFS."
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.