GoGold Resources (TSX: GGD) is wasting no time in an improving gold environment. The company last night announced that it will be conducting a bought deal private placement, lead by BMO Capital Markets.
Under the terms of the offering, the company will see the sale of 14.0 million common shares, with each share priced at $2.85 per each, a 11.6% discount to yesterdays closing price of the equity. No warrants are included under the offering. The company is currently looking to raise $40.0 million from the financing.
Furthermore, GoGold has granted the underwriters of the financing an over-allotment option, enabling the financing to be expanded by as much as 15%.
Proceeds from the offering are to be utilized for the continued development of the firms Los Ricos North and South projects, as well as for the standard general corporate purposes. The offering is currently expected to close by March 8, 2022.
The company last raised money in May 2021, when it closed a $28.75 million bought deal financing, which was conducted at a price of $2.50 per share, and also had no warrant included in the offering. The firm reportedly had US$55.8 million in cash on hand as of December 31, 2021.
GoGold Resources last traded at $3.18 on the TSX.
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