Mr. Douglas Dobbs reports
MINES MANAGEMENT CLOSES UNIT OFFERING
Mines Management Inc. has closed the
previously announced financing, in which it had agreed to sell 4,000 units, consisting of one
share of the company's Series B 6-per-cent convertible preferred stock, no par value, and a warrant
to purchase approximately 636 shares of the company's common stock, par value 0.1 cent per
share, at a price to the public of $1,000 per unit. Each share of Series B convertible preferred
stock is convertible into shares of common stock at a conversion rate of approximately 1,271
shares of common stock for each share of Series B convertible preferred stock (equivalent to a
conversion price of 78.66 cents per share of common stock). The warrants are immediately
exercisable at an exercise price of $1.0816 per share and will expire 52 months from the date of
issuance.
The offering yielded gross proceeds, before estimated offering expenses, of $4.0-million, and Mines Management intends to use the net proceeds from this offering for: (i) the
advancement of the permitting process for its Montanore project and preparation for the
delineation drilling program, which will include completion of the dewatering and rehabilitation of
the Libby adit and (ii) general corporate purposes, including possible acquisition and exploration
of new mining properties.
Roth Capital Partners acted as the exclusive placement agent for the offering.
We seek Safe Harbor.
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