Energizer Resources Inc. (TSX:EGZ) (OTCQX:ENZR) (FWB:YE5) (“Energizer” or the “Company”) announces, further to the Company’s press releases dated November 21, 2013, December 31, 2013 and January 14, 2014 that the previously announced private placement brokered and non-brokered offering of subscription receipts (“Subscription Receipts”) of the Company (the “Offering”) has now completely closed.
The Offering raised gross proceeds of C$7,486,088 on the sale of 62,384,067 Subscription Receipts resulting in 62,384,067 Common Shares and 31,192,033 Warrants. Management and employees of Energizer subscribed a total of $501,000 in this private placement. GMP Securities L.P. acted as agent under the brokered offering.
Each Subscription Receipt issued pursuant to the Offering was sold at a price of C$0.12 and was exercised, without additional consideration, on closing, for one common share (“Common Share”) and one half of one purchase warrant (each whole warrant, a “Warrant”). Each Warrant has an exercise price of C$0.18 and a term of 36 months following the date of issue, except for those Warrants issued to insiders which have a term of 18 months following the date of issue.
The net proceeds from the Offering will be used primarily to fund a Full Feasibility Study for the Company's Molo flaked Graphite Project in Madagascar, to satisfy in part the due-diligence requirements of certain financial institutions that have expressed an interest in providing mine and equipment financing during development. Funds will also be used for general working capital purposes, including generating additional quantities of graphite concentrate for product evaluation and marketing. Marketing efforts will continue to be undertaken in the coming months to enhance the profile and appeal of the project to potential strategic partners and the investing public.
All securities issued in connection with the Offering will be subject to a minimum six-month hold period.
The Company has obtained conditional approval from the Toronto Stock Exchange (the “TSX”) for the listing of all Common Shares issued or issuable pursuant to the Offering (including those underlying the Warrants). The Offering is subject to receipt of final approval of the TSX.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is focused on developing its 100%-owned, flagship Molo flaked Graphite Project, located near Fotadrevo in southern Madagascar.
For more information, please visit our website at www.energizerresources.com or contact:
Brent Nykoliation, Senior Vice President, Corporate Development or Craig Scherba, President and COO
Toll Free: 800.818.5442 or 416.364.4911