Indigo $982,500 Placement
Indigo Exploration Inc. (TSX VENTURE:IXI) (FRANKFURT:INE) has reported that it has arranged a non-brokered private placement of 3,275,000 units of the Company at a price of $0.30 per Unit for gross proceeds of $982,500 with one of the largest precious metals mutual funds in Canada.
Each Unit will consist of one common share and one-half of one common share purchase warrant. Each full Warrant will entitle the holder to purchase one common share of the Company for a period of eighteen months from the closing date, at an exercise price of $0.50 per common share. The purchase price was set at a 10-per-cent premium over the 30-day volume-weighted-average market price prior to this announcement.
The Company will pay finder’s fees equal to 7% of subscription amounts located by Topleft Securities Ltd., payable in cash, plus issue finder’s warrants in an amount equal to 7% of Units subscribed for, with each such finder’s warrant exercisable into one common share of the Company at a price of CDN $0.30 for 18 months from closing.
Closing of the Offering is anticipated to be on or about September 9, 2011, subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the Offering will be subject to a four month hold period, which will expire four months from the date of closing.
The proceeds from the Offering will be used to incur exploration expenditures on the Company’s mineral properties in Burkina Faso and for general working capital.
Upon the closing of the financing, this mutual fund will own almost 10% of the shares of the Company on an undiluted basis.
Tim Henneberry, Indigo President and CEO, stated, “Indigo’s Board of Directors are very encouraged by this strategic investment at this stage in Indigo’s development, as it reflects a high level of confidence in the Company’s high-grade Moule Vein 3 gold discovery and the upcoming 15,000 metre drilling program in Burkina Faso.”
Posted September 1, 2011
