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Batero Gold Closes $6.3 Million Special Warrant Financing
Batero Gold Corp. (�the
Company�) (TSX-V: BAT) is pleased to announce that it has closed its
previously announced oversubscribed special warrant financing co-led by
Raymond James Ltd. and Cormark Securities Inc.
(collectively the "Agents") (the �Brokered Financing�). The Company
also completed a non-brokered special warrant financing (the �Non-Brokered
Financing�) on the same terms as the Brokered Financing.
The Company issued a total of 9,714,700 special warrants (the "Special
Warrants"), at a price of C$0.65 per Special Warrant (the �Issue Price�)
for total gross proceeds to the Company of C$6,314,555 (the �Offering�).
Specifically, the Company issued 9,114,700 Special Warrants (for proceeds of
C$5,924,555) as part of the Brokered Financing and 600,000 Special Warrants
(for proceeds of C$390,000) as part of the Non-Brokered Financing.
The net proceeds will be used to advance the Company's 100% owned Quinchia Project within a planned preliminary economic
assessment, including additional drilling and metallurgical work, and for
working capital and general corporate purposes.
Each Special Warrant entitles the holder to acquire, upon deemed exercise and
for no additional consideration, one unit (a �Unit�), consisting of one
common share (�Common Share�) in the capital of the Company and one-half of
one common share purchase warrant (each whole warrant, a �Warrant�). Each
Warrant entitles the holder to acquire an additional Common Share at C$0.90
during the period ending 24 months from closing.
The Company has agreed to use its reasonable commercial efforts to obtain,
within 60 days from closing (the �Qualification Deadline�), a receipt for a
final short form prospectus qualifying the distribution of the Units upon
exercise of the Special Warrants (the �Prospectus Qualification�). If the
Prospectus Qualification does not occur before the Qualification Deadline,
each holder shall be entitled to receive, without payment of additional
consideration, 1.1 Units per Special Warrant.
Unless the Prospectus Qualification occurs, securities issued in connection
with the Offering are subject to a hold period expiring on August 27, 2012.
In consideration for their services, the Agents received a cash commission
equal to 6.0% of the gross proceeds of the Brokered Financing and an advisory
fee of 3.0% of the gross proceeds of the Non-Brokered Financing, and
compensation options entitling the Agents to purchase that number of common
share purchase warrants equal to 5.0% of the aggregate number of Special
Warrants issued pursuant to the Brokered Financing at the Issue Price and
compensation options entitling the Agents to purchase that number of common
share purchase warrants equal to 2.5% of the aggregate number of Special
Warrants issued pursuant to the Non-Brokered Financing at the Issue Price.
Each such compensation option is exercisable to acquire one common share in
the capital of the Company during the period ending 24 months from closing.
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