Vancouver — Soon after closing a $72-million brokered private placement, gold explorer Mena Resources was absorbed by project partner Rusoro Mining (RML-V, RMLFF-O) in a pre-arranged merger deal.
Mena’s financinzg consisted of more than 31.3 million subscription receipts priced at $2.30 apiece placed through a brokerage syndicate led by Canaccord Adams and including Haywood Securities and Pacific International Securities. Each receipt is exercisable, at no cost, into one common share and a half-warrant with each full warrant exercisable at $3.09 for five years.
Net proceeds of $67.75 million from the offering were subse-quently released from escrow upon Rusoro’s acquisition of Mena.
Rusoro issued one common share and a warrant in exchange for every 1.7 shares and warrants of Mena. Under the plan, more than 31.4 million Rusoro shares were distributed in the takeover. The new Rusoro warrants are exercisable at $5.25 per share for five years.
The merger of the two juniors combines their previously shared interests in the Increible 6 and Valle Hondo gold properties in Bolivar state, Venezuela. Project consolidation gives aspiring producer Rusoro full title to indicated resources of 9.1 million tonnes grading 3.5 grams gold per tonne (about 1 million contained ounces) plus 59 million inferred tonnes at 1.6 grams gold (about 3 million contained ounces).
Mena also contributes two other Venezuelan gold projects, plus properties in Chile, Honduras and the Yukon.
Following closure of the takeover, Rusoro tabled 142.9 million shares outstanding, giving the company a $510-million market capitalization at its recent $3.57-per-share trading level.
Be the first to comment on "Mena raises $72M, Rusoro takes over"