Galactic completes private placements

Galactic Resources has raised $13,875,000C through the successful completion of its private placement with a major Canadian financial institution, Robert M. Friedland, chairman, reports.

The placement was for 1.5 million special legended common shares at $9.25 per share together with a warrant to purchase an additional 1.2 million shares at $11.625 per share.

The warrant is exercisable for up to five years, provided that after two years the company will have the right to require the exercise of the warrant if the common shares have traded on the Toronto Stock Exchange at an average weighted price of at least $15 for 90 consecutive trading days.

Earlier, the company had completed a private placement in Canada of $1,250,000 of 8% subordinated convertible debentures, convertible into common shares at $11.625. Private placees also received 35 warrants for each $1,000 of debenture, entitling them to purchase one common share at $14.50 until Aug 1, 1988, for each warrant held.

The money raised through the private placements will be used primarily to further finance Galactic participation in its joint venture with Amselco Minerals to develop the Ridgeway mining project in South Carolina, to reduce general bank indebtedness and for general corporate purposes.