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RAPAPORT... Shore Gold Inc. intends to raise up to $2 million through a non-brokered private placement of common shares at a price of 20 cents per unit. Each unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one common share at 25 cents for a period of 18 months from the date of the issue. The offering is expected to close on or about June 12, 2015, provided that it may close in one or more tranches, but no later than July 3, subject to the approval of the Toronto Stock Exchange.
The company plans to use the proceeds from the placement to advance the Star-Orion South diamond project and for general corporate purposes. Shore Gold is nearing the completion of its large-diameter drilling program at the Orion South kimberlite and intends to re-estimate Orion South's mineral resource.
On May 15, the company will determine which existing shareholders are entitled to participate in the offering. If the offering is oversubscribed, Shore Gold stated that it reserves the right to increase the size of the offering or allocate subscriptions on a pro rata basis in accordance with the holdings of existing shareholders. The company will consider subscriptions from individuals who reside outside of Canada; however, these individuals need to establish that the issuance to them is exempt from prospectus and registration requirements under applicable securities law, according to the firm.
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