Founders Metals (TSXV: FDR) has a new major shareholder. The company has seen Gold Fields Netherlands Services, an affiliate of Gold Fields Limited (NYSE: GFI) make a major investment in the company.
The arrangement will see Gold Fields invest a total of $50.0 million under a non-brokered private placement, with the company set to acquire 12.05 million common shares at a price of $4.15 per each. No warrant is included in the offering.
Post-closing, the investment is expected to result in Gold Fields having an approximately 10.6% interest in Founders Metals. As part of the arrangement, the two parties are set to enter an investor rights agreement, which will enable Gold Fields to have top up and financing participant rights, technical committee representation rights, and the right to appoint one nominee to the company’s board of directors if their ownership interest meets or exceeds 12.5%.
“Combining Founders’ position as the largest and most advanced gold explorer in Suriname with the technical capabilities of a company having decades of experience developing world-class gold deposits positions us to rapidly advance work at Antino. This partnership further underscores Suriname’s potential as an emerging gold jurisdiction globally. With this capital, we are dedicating our full attention to unlocking Antino’s potential—expanding our land position and aggressively advancing regional-scale exploration across multiple high-grade targets—building value for all shareholders,” commented Colin Padget, CEO of Founders Metals.
Founders Metals last traded at $4.00 on the TSX Venture.
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