Stornoway Closes Flow-Through Financing
June 01, 09
Stornoway Diamond Corp. announce that it has closed a brokered private-placement with Sandfire Securities Inc. as lead agent, and including, Canaccord Capital Corporation and Haywood Securities Inc. consisting of 8,421,276 flow-through common shares of Stornoway, for gross proceeds of $1.43 million.
The flow-through shares were priced at $0.17 per share and will be subject to a four-month hold period expiring September 30.
The agents received a cash commission and compensation warrants, both equal to 7 percent of the gross proceeds they raised. The 568,695 compensation warrants will be exercisable at $0.17 and will expire May 29, 2011.
Company insiders subscribed for 297,059 flow-through shares on the same terms as the arm's length subscribers.
Stornoway said the proceeds will be used primarily to fund its share of exploration on the Renard Diamond Project in Quebec, Canada.