An agreement has been reached between Belmoral Mines and McLeod Young Weir International whereby McLeod will purchase four million units, each consisting of one share and one warrant, at $6.50 per unit, for resale to institutional and private investors primarily in Europe.
Sale of the units will raise $26 million for Belmoral, the money to be spent on company gold projects. Belmoral is active on properties in northern Ontario and northwestern Quebec.
Holders of the units will be entitled to exchange each unit, on or after Sept 15 of this year, for one common share and one warrant of Belmoral. Each warrant will entitle the holder to purchase, by Jan 15, 1990, one common share of Belmoral for $8.50 per share.
McLeod has been given the right to purchase up to an additional one million units on the same basis and at the same price per unit.
The share issue is the second by Belmoral this year. Warrants sold as part of the first issue may be exercised at $6.875 per share until May 1, 1989.
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