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Eagle Hill Exploration loss decreased 50%

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Staff writer ▼ | October 2, 2013
Eagle Hill Exploration Corporation released the results of its third quarter ended July 31, 2013. Net loss before other items was $1,618,939, compared to loss of $3,221,554 on October 31, 2012.
Eagle Hill Exploration
Eagle Hill ExplorationEagle Hill Exploration Corporation released the results of its third quarter ended July 31, 2013. Net loss before other items was $1,618,939, compared to loss of $3,221,554 on October 31, 2012.


On August 15, 2013, Eagle Hill's shareholders approved a private placement whereby Southern Arc and Dundee together invested an aggregate of $12 million to each hold a 26.14% interest in Eagle Hill (all amounts in Canadian dollars).

Southern Arc invested $7,324,050 to acquire 97,654,000 units of Eagle Hill and Dundee invested $4,675,950 to acquire an additional 62,346,000 units at a price of $0.075 per unit. Each unit comprises one common share of Eagle Hill and one half share purchase warrant, with each whole warrant entitling the holder to acquire a further common share of Eagle Hill at a price of $0.10 per share for a period of four years.

Following completion of the $12 million private placement, Eagle Hill finalized the acquisition of Noront's 25% interest, as well as Noront's royalty interests and rights associated with the property. The company paid to Noront a cash consideration of $5,000,000 and issued 25 million Eagle Hill common shares, subject to a hold period of four months.

From the $12 million private placement, the company used $5,000,000 to purchase Noront's 25% interest, as described above, and paid a finder's fee consisting of $180,000, 1,600,000 common shares and 800,000 warrants exercisable for one year at $0.10 per share. The company paid $552,500 as termination payments to three former officers and a Director of the company.


 

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