Energizer Resources Inc. (TSX: T.EGZ, Stock Forum) reports that the previously announced private placement brokered and non-brokered offering of subscription receipts of the company has now completely closed.
According to the Energizer Resources press release, the offering raised gross proceeds of $7.5 million on the sale of 62.4 million subscription receipts resulting in 62.4 million common shares and 31.2 million warrants.
Management and employees of Energizer subscribed a total of $501,000 in this private placement. GMP Securities L.P. acted as agent under the brokered offering.
Each subscription receipt issued pursuant to the offering was sold at a price of $0.12 and was exercised, without additional consideration, on closing, for one common share and one half of one purchase warrant. Each warrant has an exercise price of $0.18 and a term of 36 months following the date of issue, except for those warrants issued to insiders which have a term of 18 months following the date of issue.
The net proceeds from the offering will be used primarily to fund a full feasibility study for the company's Molo flaked graphite project in southern Madagascar, to satisfy in part the due-diligence requirements of certain financial institutions that have expressed an interest in providing mine and equipment financing during development.
Funds will also be used for general working capital purposes, including generating additional quantities of graphite concentrate for product evaluation and marketing. Marketing efforts will continue to be undertaken in the coming months to enhance the profile and appeal of the project to potential strategic partners and the investing public.
Energizer is a mineral exploration and development company based in Toronto, Canada, which is focused on developing its flagship Molo flaked graphite project.
On Monday, Energizer rose 3.3% and was trading at $0.155 a share. The company has a market cap of $41.1 million, based on 264.9 million shares outstanding.