Haywood buys piece of Planet (November 17, 2003)

A bought-deal financing with Haywood Securities all but assures Planet Exploration (PXI-V) of $5 million in gross proceeds.

The private placement, which requires exchange approval to proceed, entails 3.6 million units priced at $1.40 apiece. A unit consists of a share and a warrant that expires two years after the deal’s closing and is exercisable at $2. The conversion can be forced beforehand if the company’s shares exceed $3 for 20 consecutive trading days.

Haywood is entitled to 6% of the gross proceeds and to a number of units equal to 5% of those sold. The units will be priced at $1.40 each and subject to the same conditions as the others. All the securities are subject to a 4-month holding period.

Net proceeds are mainly earmarked for exploration in Ontario, Mongolia and Mexico. A summer drill program at Sidace Lake, near Red Lake, in which Goldcorp (G-T) is earning a half-stake, returned 11.29 grams per tonne over 8.5 metres of a 36-metre mineralized intersection (T.N.M., Aug. 28/03).