Dec 24 2010
Chieftain Metals Inc. ("Chieftain" or the "Company") is pleased to announce the closing of its initial public offering today of 2,500,000 common shares at a price of $5.00 per common share and 910,000 flow-through common shares at a price of $5.50 per common share, resulting in gross proceeds of approximately $17.5 million (the "Offering").
The Offering was led by Wellington West Capital Markets Inc., with a syndicate of agents that included Raymond James Ltd. and Haywood Securities Inc. (collectively, the "Agents"). The Company has granted an over-allotment option to the Agents, exercisable for a period of 30 days from the date hereof, to purchase up to an additional 511,500 common shares at a price of $5.00 per common share to cover over-allotments, if any. Immediately prior to the closing of the Offering, the Company closed a private placement of flow-through shares for gross proceeds of approximately $1.2 million.
The common shares are listed on the Toronto Stock Exchange under the symbol "CFB" and will begin trading today. Net proceeds of the offering will be used to initiate the recommended Phase 1 work program at the Tulsequah Chief Deposit and the drilling program at the Big Bull Deposit, and to repay a portion of certain indebtedness of the Company.