At least two companies have entered into share purchase agreements with the Caratax Diamond Exploration Limited Fund, a tax-sheltered investment fund that will hold a basket of Canadian diamond exploration companies (T.N.M, May 17/93).
Although the fund has yet to receive regulatory approval, fund manager Jean-Pierre Colin says a complete list of the companies involved will be included in a final prospectus to be filed shortly.
Aaron Oil (ASE) and Caledonia Mining (TSE) are first off the starting block. Through a private placement with Caratax, Aaron will issue up to 416,667 flow-through common shares at $2.40 per share. It has also agreed to raise up to $7.6 million through brokered private placements.
Caledonia will issue 750,000 units, each unit consisting of one flow-through share and one warrant, for $1 per unit. Two warrants give Caratax the right to buy an additional share at $1.25 before March 31, 1995.
Caratax also has the option to buy an additional 250,000 Caledonia units at $1 before March 31, 1994.
Caratax fund will offer a 100% tax writeoff on a minimum $5,000 investment.
Be the first to comment on "DIAMOND PAGE — Diamond fund’s rolling"