With the recent offering of more than 35 million transferable subscription rights, shareholders of Joutel Resources (TSE) will be able to exchange their shares for rights in the company. The offer expires Aug. 14. Shareholders will then be able to exchange eight rights plus 16 cents for one unit consisting of one new share and one half of a transferable warrant.
If shareholders subscribe to all the units, Joutel will raise a minimum of $330,000 and a maximum of $680,000. Joutel says it plans to apply the proceeds to ongoing and new exploration and development projects including: a 10-hole drill program at the Denison Lake property with Central Crude (TSE) in the Mishibishu Lake area of northern Ontario, drilling by Noranda (TSE) on its Casa Berardi claims in Quebec, and grassroots work on its newly acquired claims near the Springpole project at Birch Lake, Ont.
Warrants will be posted for trading the same day the rights offering expires (Aug. 14). One warrant plus 25 cents will entitle the holder to one additional share of Joutel until the close of trading on Nov. 6.
Following the rights offering, Joutel will have a minimum of 37.9 million and a maximum of 40 million shares outstanding, compared with the current 35.5 million. If the maximum number of warrants are issued, an additional 2.2 million shares will be issued.
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