PMI Gold Corp said it has received subscriptions for a private placement of 20 million units in the company at 5 cents each to raise CDN$1 million, with each unit consisting of one common share and one transferable share purchase warrant.
Each warrant entitles the holder to purchase one additional common share of the company for a period of three years from the date of issue, at a price of 5 cents per share.
The money will be used to pay down the bridge loan outstanding between the company and Trafalgar Capital Specialized Investment Fund.
PMI Gold is also planning to raise an additional CDN$1.5 million through a private placement of 30 milion units on the same terms, except the warrants will be exercisable at 10 cents per share during the second and third years.
Money raised from the second private placement will be applied to pay out the balance of the Trafalgar bridge loan and for working capital. In the event that PMI raises additional capital and the Trafalgar loans are paid out in full before March 11 2009, this private placement will not proceed, it added.
PMI Gold to raise up to CDN$2.5 million in 2 private placements
Last updated: 04:00 03 Mar 2009 GMT, First published: 05:00 03 Mar 2009 GMT