Gold Mountain Mining (TSX: GMTN) is evidently in need of capital. The company this morning indicated they will be conducting a bought deal financing, lead by eight capital, to raise gross proceeds of $12.0 million.
Under the terms of the financing, the company is looking to sell units of the company at a price of $1.25 per each. Each unit contains one common share, and one half of a common share purchase warrant. Warrants are valid for a period of two years from the date of closing and contain an exercise price of $1.75 per share.
An over-allotment option has also been granted in connection with the offering, enabling the underwriters to expand the financing by up to 1.44 million additional units.
Proceeds from the financing are to be used for the continued development of the firms flagship Elk Gold Project, as well as for general corporate purposes and working capital.
The offering is currently slated to close April 21, 2022.
Gold Mountain Mining last traded at $1.43 on the TSX.
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