Gold Torrent Inc. unit Gold Torrent (Canada) Inc. will undertake a private placement in a bid to raise C$12.9 million by issuing 34 million subscription receipts at 38 Canadian cents apiece.
Gold Torrent Canada is expected to become the public parent company of Gold Torrent US once the latter completes its reorganization, according to the Feb. 22 release.
The placement proceeds will be used for the construction and development of Gold Torrent US' Lucky Shot gold project in Alaska, and for general working capital purposes.
Following the reorganization, Gold Torrent Canada will pursue either a direct listing on the TSX Venture Exchange, or enter into a reverse takeover transaction with an already-listed company.
Each subscription receipt will be convertible to one unit, which will contain a common share of Gold Torrent Canada and half of a share purchase warrant, with each full warrant exercisable for four years into an additional common share at 50 cents each.