Stardust Metal to Raise CA$12.6 Million Via Brokered Private Placement
Stardust Metal (ZIGY.V) entered into an agreement with Canaccord Genuity as lead agent and sole bookrunner, to launch a private placement offering on a "best efforts" basis for proceeds of up to CA$12.6 million, it said in a statement late Thursday.The company said it received a lead order from a recognized publicly traded regional producer. The offering will consist of a combination of up to 3.3-million premium flow-through common shares at CA$2.725 per premium FT share, and up to 1.8-million common shares at CA$1.95 per common share, it said.Stardust Metal will also grant the agents an option to sell an additional 15% of each of the premium FT shares and common shares, to raise additional proceeds of up to CA$1.8 million. Proceeds from the sale of the premium FT shares will be used to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures," it said.Proceeds from the sale of the common shares will be used for working capital and general corporate needs.Shares of the company closed up 14% at CA$2.39 on Thursday on the TSX Venture Exchange.
