Azimut Exploration To Conduct $25 Million Bought Deal Offering
Azimut Exploration Inc. (TSXV: AZM) announced today that it has entered an agreement to conduct a bought deal private placement financing for aggregate proceeds of $25 million. The agreement was made with a syndicate of underwriters led by Paradigm Capital.
The offering consists of 3.5 million flow-through shares at $3.32 per share and 7.1 million non-flow-through shares at $1.90 per share.
The company, however, shared that an unnamed investor that participated in its private placement offering in February 2020 will also participate in the announced offering for 3.4 million shares. This brings the stake of the said investor to 9.8%.
Azimut also granted the underwriters the option to sell an additional 15% of the common shares in the offering for a further $3.8 million within 48 hours prior to the closing of the transaction.
The company said proceeds from the sale of flow-through units will be used for qualified exploration expenditures under the Income Tax Act. Azimut is currently advancing the Patwon gold discovery on its Elmer property.
Proceeds from the non-flow-through units will be used for exploration and for general corporate purposes.
The offering is expected to occur on July 14, 2021, subject to customary conditions and approvals.
Azimut Exploration Inc. last traded at $2.01 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
