Vancouver – After closing its $72-million brokered private placement, Mena Resources (MEA-V, MEARF-O) stands ready to be acquired by project partner Rusoro Mining (RML-V, RMLFF-O).
Menas financing consisted of 31,337,100 subscription receipts priced at $2.30 apiece and were placed through a brokerage syndicate led by Canaccord Adams along with Haywood Securities and Pacific International Securities. Receipts are exercisable, at no cost, into one common shares and a half-warrant with each full warrant exercisable at $3.09 for five years.
Gross proceeds of the offering are to be held in escrow pending Rusoros planned acquisition of Mena. Rusoro is to issue one common share and one share purchase warrant for every 1.7 shares and warrants of Mena. Under the plan 18,433,588 Rusoro shares and warrants for the purchase of 9,216,794 Rusoro shares will be issuable in exchange for Mena shares and warrants underlying the subscription receipts. The Rusoro warrants will be exercisable at $5.25 per share for five years.
Rusoros move to acquire Mena is aimed at combining the shared interest in the pairs Increible 6 and Valle Hondo gold projects in Bolivar State, Venezuela. Consolidation of the projects will give Rusoro full title to the indicated resources of 9.1 million tonnes grading 3.5 grams gold per tonne (about one million contained oz.) plus 59 million inferred tonnes at 1.6 grams gold (about 3 million contained oz.).
Mena will also contribute an additional two Venezuelan gold projects plus properties in Chile, Honduras and the Yukon.
Shares of Mena closed up 7 at $1.92 apiece on the closure of the major financing while Rusoro shares shed a penny to close at $3.74 apiece.
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