Campbell offering ready for street

A rights offering by Campbell Resources (CCH-T, CBLRF-O) to assist the restructuring of the financially troubled company is ready for issue, its final prospectus having been approved by securities regulators.

The offering gives Campbell shareholders one right for every share they hold, with five rights tradable for three units, priced at 8 each, up to the end of business on Nov. 6. The units, in turn, split into a share and half a purchase warrant, with a whole warrant exercisable at 15 until May 26, 2008. An accelerator clause allows Campbell to force exercise of the warrants within a year of the expiry if the 20-day, volume-weighted average of the share price goes above 20.

This gives Campbell up to $5 million for operations

Campbell entered creditor protection in June 2005 and in May of this year concluded a financing deal with Nuinsco Resources (NWI-T, NUIRF-O) and Sprott Securities to raise enough cash to clear its liabilities. Nuinsco has a 12% interest in Campbell and can increase that to 27% under the terms of a warrant issue. Those warrants have the same conditions as those that will be issued through the rights offering.