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GeoMegA Resources to raise $15 million via private placement

May 17, 2011 10:28 AM ETGMA
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Canadian mineral explorer GeoMegA Resources (CVE:GMA) said Monday it plans to raise $15 million through a private placement financing.

The Quebec-based company, has agreed, with a syndicate of agents led by Mackie Research Capital Corp, to issue a number of units, consisting of one common share in GeoMegA and one-half of a common share purchase warrant. The cost of each unit, and the terms of each warrant, will be determined in context with the market.

GeoMegA also plans to grant the agents an option to increase the size of the offering by a maximum of $5 million in units.

All shares purchased under this agreement are subject to a four month hold.

Profits from this effort will fund the continued exploration of GeoMegA's mineral properties, many of which are located in the Abitibi and Upper Lautentian regions of Quebec, as well as for other working capital purposes, the company said.

Closing of the deal is scheduled for early June.

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