Founders Metals Closes Out $32.1 Million Financing Round That Saw B2Gold Take 5% Stake
Founders Metals (TSXV: FDR) has closed on a bought deal financing, which was part of a larger financing package that saw B2Gold Corp (TSX: BTO) take an initial stake in the gold explorer.
The bought deal financing saw the company issue 8.34 million shares at a price of $2.40 per each, with no warrant offered as part of the financing. The offering was led by BMO Capital Markets.
At the time of the financing being announced, Founders had indicated that a “major precious metals producers” would be taking a 5% interest in the company, which was later revealed to be B2Gold. The producer invested $12.1 million into Founders Metals at a price of $2.75 per common share, with a total of 4.4 million shares being issued.
An investor rights agreement meanwhile will permit the producer to take up to a 9.9% interest in the explorer.
The combined $32.1 million financing round will be used towards Founders’ 2025 exploration program, which is now said to be fully funded.
“We are very pleased with B2Gold’s investment in Founders along with the support and validation it brings to our Antino Gold Project. We look forward to drawing on B2Gold’s experience in exploring for, and developing, world-class mining assets in similar geological environments. This broader financing package leaves Founders well positioned to ramp up exploration at Antino, fully funding our planned 2025 exploration budget and the near-term addition of a fourth diamond drill,” commented Colin Padget at the time of the B2Gold portion closing.
Founders Metals last traded at $3.66 on the TSX Venture.
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