May 16, 2006
PGM Ventures Corporation (TSXV:PPG), a public mining company currently in the process of bringing its Aguas Tenidas project in southwestern Spain into commercial production, completed a bought deal equity financing of 10 million units at a price of $3.00 per unit for gross proceeds of $30 million. Three-quarters of the proceeds from the financing were placed in escrow pending satisfaction of certain escrow release conditions requiring the company to obtain certain permits related to its Aguas Tenidas project. Each unit consisted of one common share and three subscription receipts. Each subscription receipt is exercisable by the holder at any time to receive one common share without payment of any additional consideration, and will be automatically exercised concurrently with the satisfaction of the escrow release conditions. If the escrow release conditions are not satisfied on or prior to the date that is six months following the closing, outstanding subscription receipts will be repurchased from the escrowed proceeds. The underwriting syndicate was co-led by MGI Securities Inc., Orion Securities Inc. and Canaccord Capital Corporation.
Wildeboer Dellelce LLP represented the Underwriters with a team including Vaughn MacLellan, Sanjeev Patel and Geoffrey Cher (corporate/securities).