Transactions
Mirabela Nickel Ltd Completes $12,650,000 Private Placement
By Chad Accursi, Nancy Choi, Christopher B. Norton, Alexander Pizale
On January 8, 2010, Mirabela Nickel Limited completed a private placement in Canada of 5.5 million special warrants at a price of $2.23 per Special Warrant for aggregate gross proceeds of $12,265,000. The private placement was led by GMP Securities L.P. as part of a syndicate that also included Dundee Securities Corporation.
Each Special Warrant entitles the holder thereof, subject to adjustment in certain circumstances, to acquire upon conversion, or deemed conversion, without payment of any additional consideration, one ordinary share of the Company. The Special Warrants may be converted at any time following the date hereof at the option of the holder and will be deemed to be converted, without any further action on the part of the holder, on the date that is the earlier of: (i) May 9, 2010; and (ii) the third business day after the date a receipt is issued, by the applicable regulatory authority in each province in which the Special Warrants were sold, in respect of a final prospectus qualifying the distribution of the ordinary shares issuable upon conversion or deemed conversion of the Special Warrants.
The Company has agreed to use its reasonable best efforts to file the Final Prospectus and to obtain the Final Receipt by January 29, 2010. In the event that the Final Receipt is not issued by February 19, 2010, each Special Warrant converted or deemed to be converted after such date will entitle the holder thereof to acquire, for no additional consideration, 1.1 ordinary shares (in lieu of 1 ordinary share).
Until the Final Receipt is issued for the Final prospectus, the Special Warrants and the ordinary shares issuable thereunder will be subject to a hold period under applicable Canadian securities laws until May 9, 2010.
Cassels Brock acted for GMP Securities L.P. with a team that included Chad Accursi (Securities and Mining), Chris Norton (Tax), Nancy Choi (Securities) and Alexander Pizale (Securities).