Newmont Mining (NYSE:NEM) has boosted its stake in Loncor Resources (TSX-V:LN) to about 17 percent in a $3.9 million private placement.
Terms of the agreement are Newmont will buy 2 units of Loncor for C$1.95. The units will be made up of one common share of Loncor and one-half of a common share purchase warrant.
For a price of C$2.30, full warrants will be able to be exercised for a period of two years from the closing date, for one more common share of Loncor.
Newmont already owns 2 million warrants, which under the terms of the deal they could use to acquire one common share in Loncor as well, which would provide the company with another C$2.9 million in capital if Newmont decides to take that action.
At this time Newmont holds 9.2 percent of Loncor, and when the deal is completed it will increase to 16.87 percent.
Loncor said it will use the capital for general purposes and to explore holdings in the Democratic Republic of Congo.
Monday, December 13, 2010
Newmont (NYSE:NEM) Increases Stake in Loncor (TSX-V:LN) Via Private Placement
Labels:
Loncor,
Newmont Mining Corp,
Private Placement
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