Freeman Gold Corp (CSE: FMAN) has upsized its bought deal financing announced this morning from $6.5 million to that of $9.0 million, a nearly 50% increase in the original placement amount. The increase was due to strong demand for the offering.
Under the upsized bought deal financing, the company will now be selling 18,000,000 common shares at a price of $0.50 per share. Notably, no warrants are included on the financing, which is a strong indicator of demand for the company.
An over allotment option also exists for the upsized placement, with the underwriters eligible to purchase up to an additional 2.7 million common shares for a period of 30 days following the closing of the offering. If fully exercised, the over allotment option would increase gross proceeds to $10.3 million.
The offer is still expected to close by July 15, with funds going towards exploration work at Freeman Gold’s Lemhi Gold Project in Idaho, along with its Comstock Property in BC. Additional proceeds will be put towards working capital.
Freeman Gold last traded at $0.61 on the CSE.
FULL DISCLOSURE: Lodge Resources Inc is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Lodge Resources Inc on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
