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American Vanadium Corp. (TSXV:AVC,OTCQX:AVCVF) increased the size of its previously announced private placement to $8,000,000, at a price of $0.50 per unit, for up to 16,000,000 units. Dundee Corporation is expected to participate in the private placement for 12,000,000 units, for aggregate gross proceeds of $6,000,000 to close in two tranches. The first tranche of up to $5,000,000 is expected to close on or about September 26, 2013.
As quoted in the press release:
The Private Placement will now be for up to 16,000,000 units at the price of $0.50 per unit (“Unit”) for aggregate gross proceeds of $8 million. Dundee Corporation (“Dundee”) is expected to participate in the Private Placement for 12,000,000 Units for aggregate gross proceeds of $6,000,000 to close in two tranches.
It is expected that the first tranche of the Private Placement for up to $5 million, including $3 million from Dundee, will close on or about September 26, 2013. The second tranche of $3,000,000 from Dundee is expected to close on or prior to the 90th day following receipt of TSX Venture Exchange conditional approval in respect of the Private Placement.
Each Unit will consist of one common share in the capital of the Company (a “Common Share”), one half of a warrant exercisable at $0.60 (“$0.60 Warrant”) and one half of a warrant exercisable at $0.80 (“$0.80 Warrant”). Each whole $0.60 Warrant will entitle the holder thereof to purchase one Common Share (a “Warrant Share”) at a price of $0.60 for a period of 6 months following the closing of the first or second tranche of the Private Placement, as applicable. Each whole $0.80 Warrant will entitle the holder thereof to purchase one Warrant Share at a price of $0.80 for a period of 2 years following the closing of the first or second tranche of the Offering, as applicable.
American Vanadium Corp. President and CEO, Bill Radvak, said:
We continue to make great strides in positioning American Vanadium as a leading energy storage company in America, and are very appreciative of the strong financial backing of Dundee Corporation as well as our other shareholders in this endeavor. This financing will allow us to grow a sales force for CellCube vanadium flow batteries in North America, and is expected to fund the operations at our Gibellini Vanadium Project, Nevada through to completion of the environmental permitting process and mine design.
Click here to read the American Vanadium Corp. (TSXV:AVC,OTCQX:AVCVF) press release
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