A recent rights offering generated proceeds of $682,583 for Noramco Mining (TSE) to be used for general operating and corporate purposes.
A total of 2.27 million units were subscribed for, which includes 997,980 by Noramco Capital, a private company controlled by Noramco Mining Chairman Bruce McDonald.
The subscription price was for 30 per unit. Each unit represents one common share, and a warrant to buy an additional common share at 40 before Oct. 25, 1993, after which time the warrants will expire.
After giving effect to the issuance of shares subscribed for under the rights offering, McDonald will hold a total of 4.37 million shares directly and indirectly, representing 21.3% of the then outstanding shares, and warrants to purchase an additional 997,980 shares. Breakwater Resources (TSE) will hold 4.9 million shares, about 23.9% of Noramco Mining’s outstanding shares after the rights offering.
Before the rights offering, Breakwater held an approximate 26.9% interest in Noramco Mining, while Noramco Capital held an 18.5% interest.
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