Energizer Resources Announces Closing of First Tranche of Non-Brokered Private Placement of US 11,416,245; Announces Appointment to Special Advisory Committee
Energizer Resources Inc. (TSX.V: EGZ) (OTCBB: ENZR) (FWB: YE5) (“Energizer” or the “Company”) announces the closing of the first tranche of its previously announced non-brokered private placement (the “Offering”). In this first tranche, 25,369,433 units were subscribed for at U.S.$0.45 per unit for total gross proceeds of U.S.$11,416,245.
Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole Purchase Warrant entitles the holder to purchase one common share of the Company at an exercise price of US$0.75 for a period of 24 months from the date of issue.
All securities to be issued in connection with this Offering will be subject to a statutory six-month hold period as required by the U.S. authorities from the date of issue. All securities issued in connection with the Offering will also be subject to a four-month hold period in Canada from the date of issue. Completion of the Offering remains subject to approval of the applicable regulatory authorities, including the TSX Venture Exchange.
First Tranche Investors
The following is a list of the investors who participated in the first tranche of the Offering:
- Total gross proceeds of U.S.$5,000,000 were subscribed through MacDougall, MacDougall & MacTier Inc., which acted as a non-brokered agent.
- KS Centoco Ltd., a private manufacturing company based in Ontario, subscribed for total gross proceeds of U.S.$2,000,000
- Canadian institutional investors on behalf of managed accounts subscribed, in aggregate, for total gross proceeds of U.S.$1,500,000
- Certain European merchant banking firms and other private investors subscribed for total gross proceeds of U.S.$2,916,245
In connection with the closing of the first tranche of the Offering, the Company paid finders’ fees consisting of a cash fee of 6% to certain eligible finders totaling U.S.$460,800, and compensation warrants equal to 6% of the units sold totaling 1,023,999 compensating warrants. Each full compensation warrant entitles the holder to acquire one (1) Common Share of the Company at U.S.$0.45 per Common Share for a period of twenty-four months from the date of issue.
The Company intends to close the second and final tranche of the Offering by February 8, 2011.
Energizer Strengthens Special Advisory Committee
The Company is pleased to announce the appointment of Anthony G. Toldo to Energizer’s Special Advisory Committee, which currently consists of Brian Tobin, Chairman, and Peter Harder.
As President of KS Centoco Ltd. and a number of its related corporations comprising the Toldo Group, Mr. Toldo brings considerable experience, relationships and expertise to the committee. Mr. Toldo is expected to be integral in championing potential vertical integration and downstream partner opportunities for Energizer.
The Toldo Group is based in Windsor, Ontario and is composed of several privately held corporations that manufacture and operate in diversified sectors including automotive, quick serve restaurant, aviation, and gaming and entertainment industries. Mr. Toldo has also served as a director on several boards, including not for profit and publicly traded organizations.
“We are pleased to welcome Mr. Toldo to our special advisory board and look forward to working with him to advance vertical integration and other opportunities for our Green Giant vanadium project”, said Julie Lee Harrs, President and COO of Energizer.
Use of Funds
Proceeds of the Offering will be used by the Company to complete a National Instrument 43-101 preliminary economic assessment, including advanced metallurgical test work to optimize the process flow sheet, for additional exploration and for general working capital requirements.
By press release dated December 9th, 2010, the Company announced that Objective Capital Research Limited had initiated research coverage on the Company (the “Report”). As noted in the Report, the Report was sponsored by Energizer and therefore the Company paid fees in connection with the Report.
About the Green Giant Vanadium Project
The Green Giant vanadium project, located in Madagascar, is 100% owned by Energizer. The Company has a National Instrument 43-101 compliant indicated resource estimate of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide (“V2O5”) containing 756.3 million pounds of V2O5 and an inferred resource of 9.7 million tonnes at an average grade of 0.632% V2O5 containing 134.5 million pounds of V2O5. With this resource estimate, the Green Giant deposit currently ranks as the third largest known vanadium deposit in the world, with 75% of the 21-kilometre (18 mile) stratigraphic trend of vanadium remaining open for drilling.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada. The Company’s common shares are traded on the TSX Venture Exchange under the symbol EGZ, on the Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.
For more information please visit our website at www.energizerresources.com
Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
or Julie Lee Harrs, President and COO