Uranium exploration and development firm Madison Metals has successfully completed a private placement, issuing 1.15-million units at a price of C$0.40 a unit. The transaction generated about $460 000 in cash.
Each unit comprises one common share in the company's capital and one-half of one common share purchase warrant. Each warrant entitles the holder to buy one common share at a price of C$0.60 within a 12-month period.
As part of the private placement, Madison Metals has allocated an additional 100 000 units to its chairperson and CEO Duane Parnham and chief strategy officer Ryan Thompson. These units serve as payment for debts owed them, totalling $40 000, bringing the total private placement value to $500 000.
Madison said in a statement on December 12 that the funds raised through this private placement were earmarked for exploration activities on the company's properties and general working capital purposes. The company has projects in Namibia and Canada.
On October 23, Parnham filed an early warning report, disclosing his ownership of about 2.1-million common shares, 620 000 options and 184 333 common share purchase warrants. This ownership represented 10.6% of the issued and outstanding common shares on a non-diluted basis and 9.6% on a partially diluted basis.
Following the private placement and prior acquisitions totalling 473 500 common shares, Parnham's ownership has increased to nearly 2.6-million common shares, 620 000 options and 366 833 common share purchase warrants. This represents 9.32% of the issued and outstanding common shares on a non-diluted basis and 12.42% on a partially diluted basis – an increase of more than 2% in Parnham's holdings on a partially diluted basis.
Madison Metals also noted its intention to grant stock options for 100 000 common shares to a consultant of the company. These options will vest immediately and be exercisable for a five-year period from the grant date, with an exercise price set at $0.49.