Golden Shamrock places $25 mln warrants

Golden Shamrock Mines Ltd said it has completed its underwritten private placement of 25,000 special warrants worth about US$25 million to mainly U.S. and Canadian investors.

Golden Shamrock said the capital raised will be used to fund expansion at the Iduapriem gold mine in Ghana, the repayment of debt, and preparation of a bankable feasibility study at the Siguiri gold project in Guinea.

The placement was underwritten by Nesbitt Burns Inc, a unit of Bank of Montreal. Golden Shamrock shares closed two cents lower at 90 cents.

Golden Shamrock said each warrant entitles a holder to receive US$1,000 convertible 7.5 percent unsecured subordinated debenture, each convertible into 1321.68 ordinary Golden Shamrock shares, representing a conversion price of A$1.0324.

Golden Shamrock said with the support of Nesbitt Burns as sponsor, the company has agreed to file a prospectus in the province of Ontario, Canada to qualify the convertible debentures for resale in Canada. It said it will also seek a listing of its ordinary shares and the convertible debentures on the Toronto stock exchange.