Battle North Gold (TSX: BNAU) this morning announced a significant financing. Co-lead by Cormark Securities and Stifel GMP, the company will be conducting bought deal for both common shares and flow through common shares, for total gross proceeds of approximately $45.0 million. Funds will be utilized exploration of the firms Red Lake Regional Exploration Claims, along with general working capital.
Under the terms of the bought deal, a total of 21,625,000 common shares of the company will be sold at a price of $1.85 per share, for gross proceeds of $40.0 million. An additional 1,865,700 flow through shares will be issued at $2.68 per share, for additional proceeds of $5.0 million. No warrants are being issued in connection with the offerings.
Further, the underwriters also have an over-allotment option to extend the financing by 15%, for both the common shares and the flow through shares. The option exists for a period of 30 days from the closing of the transaction.
Proceeds are to be used for exploration, pre-development and development activities of the firms Red Lake property, in addition to working capital and the potential repayment of the firms outstanding loan facility.
The financing is expected to close by August 27, 2020.
Battle North Gold last traded at $2.03 on the TSX.
Information for this briefing was found via Sedar, MAS Gold and Southern Empire Resources. 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.
