NEW YORK, NEW YORK--(Marketwired - March 11, 2016) - Electrum Strategic Opportunities Fund L.P. ("Electrum") announces that Electrum and Wellgreen Platinum Ltd. (the "issuer") entered into a unit purchase agreement (the "Purchase Agreement"), dated March 9, 2016, pursuant to which Electrum agreed, subject to certain terms and conditions set forth in the Purchase Agreement, to acquire ownership of 14,000,000 units of the issuer (the "Units") at an aggregate subscription price of CAD$2,800,000 (the "First Tranche Financing"). Each Unit is comprised of one common share in the capital of the issuer (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at a price of CAD$0.27 until the five year anniversary of the date of its issuance. The Purchase Agreement further requires Electrum, after the closing of the First Tranche Financing, subject to certain terms and conditions set forth in the Purchase Agreement, to acquire ownership of an additional 36,000,000 Units at an aggregate subscription price of CAD$7,200,000 (the "Second Tranche Financing").
Upon closing of the First Tranche Financing, Electrum would own 14,000,000 Common Shares and 14,000,000 Warrants representing 9.9% of the issued and outstanding Common Shares or 18.1% upon exercise of the Warrants (assuming that a total of 15,500,000 Units are issued in the First Tranche Financing and assuming exercise of all of the Warrants owned by Electrum and that no other securities, including those convertible into or exercisable for the issuer's securities, are issued, converted or exercised).
Upon closing of the Second Tranche Financing, Electrum would, in the aggregate, own 50,000,000 Common Shares and 50,000,000 Warrants representing 26.9% of the issued and outstanding Common Shares or 42.4% upon exercise of the Warrants (assuming that a total of 60,500,000 Units are issued in the First Tranche Financing and the Second Tranche Financing and assuming exercise of all of the Warrants owned by Electrum and that no other securities, including those convertible into or exercisable for the issuer's securities, are issued, converted or exercised).
The Units referred to above, pursuant to both the First Tranche Financing and the Second Tranche Financing, would be acquired for investment purposes and Electrum and/or one or more of its affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of Common Shares or other securities of the issuer whether in the open market, by privately negotiated agreement or otherwise.
Electrum is an "accredited investor" (as such term is defined in National Instrument 45-106 - Prospectus Exemptions adopted by the Canadian Securities Administrators ("NI 45-106")) because Electrum is a "person" (as such term is defined in NI 45-106) in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are "accredited investors".
Electrum is located at 700 Madison Avenue, 5th Floor, New York, NY 10065, USA. A copy of the early warning report to which this news release relates can be obtained from Michael Williams (646-365-1600) or on the SEDAR profile of the issuer at www.sedar.com.
Contact Information:
646-365-1600