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Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR) initiated a “best-efforts agency” private placement offering of up to 37,500,000 special warrants of the Company at C$0.12 per Special Warrant, representing aggregate gross proceeds of up to C$4,500,000.
Energizer recently released its Feasibilty Study for the Molo deposit in Madagascar, indicating a post-tax NPV of US$389,797,113 at a 10-percent discount, a post-tax IRR of 31.2 percent and a payback period of 4.84 years. CAPEX is at US$149.9 million, with on-site OPEX per tonne of concentrate at US$353 from year three onwards.
As quoted in the press release:
Each Special Warrant entitles the holder to acquire, for no additional consideration, one unit (“Unit”) of Energizer, with each Unit comprised of one common share (“Common Share”) of Energizer and one-half of one common share purchase warrant (each whole common share purchase warrant a “Warrant”) of Energizer. Each full Warrant will entitle the holder thereof to purchase one Common Share of Energizer at a price of US$0.14 per Common Share, for a period of 36 months following the Closing Date.
The Special Warrants will be deemed to be exercised without payment of additional consideration or further action, on the earlier of: (i) the third business day following the day upon which the Issuer obtains a receipt for a final prospectus (the “Final Prospectus”) qualifying the underlying Common Shares, the underlying Warrants, and the common shares underlying the Warrants (collectively the “Underlying Securities”) from the securities regulatory authority in each jurisdiction in which Special Warrants are sold under the Offering (and further provided that the Company has filed (and has in effect) a resale registration statement (the “Registration Statement”) in the United States with the Securities and Exchange Commission relating to the Underlying Securities; and (ii) that date that is six months following the closing of the Offering.
The Company shall use its commercially reasonable efforts to (i) file and obtain a receipt for the Final Prospectus and (ii) file (and have in effect) the Registration Statement as soon as reasonably practicable.
If the Company fails to obtain a final receipt for the Final Prospectus and file (and have in effect) the Registration Statement within 90 days following the closing of the Offering, the holders of Special Warrants will be entitled to receive 1.1 Common Shares (instead of one Common Share) and 0.55 of a Warrant (instead of 0.5 of a Warrant) on the deemed exercise of the Special Warrants.
In addition, the Agents (defined below) have been granted an option, exercisable at any time up until the closing of the Offering to sell an additional 7,500,000 Special Warrants for additional gross proceeds of up to C$900,000.
The Offering will be co-led by two Agents and may include a selling group. The Offering is being made on a best efforts agency basis and is expected to close on or about March 16, 2015. Completion of the Offering remains subject to approval of the applicable regulatory authorities, including the Toronto Stock Exchange. The Agents will be paid a cash commission in connection with the Offering equal to 7% of gross proceeds.
Click here to read the Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR) press release
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