Karora Resources Increases Financing To $60 Million
Investor demand is evidently still present within the mining sector. Karora Resources (TSX: KRR) this morning expanded the size of its bought deal that was announced late on Tuesday.
The bought deal financing has been upsized from the original $50.0 million figure it was looking to raise to that of $60.0 million. The offering, lead by Haywood Securities and Cormark Securities, is looking to sell up to 12.5 million shares via a bought deal at $4.80 per share, with no warrant offered under the financing.
A 15% over-allotment option is also in play on the financing.
Proceeds from the financing are to be used for the purchase of the Lakewood Mill, which the company is paying a total figure of A$80 million for of which A$70 million is in the form of cash. Proceeds are also to be used for the advancement of the firms nickel program at Beta Hunt as well as working capital and general corporate purposes.
The financing is slated to close on June 15.
Karora Resources last traded at $4.79 on the TSX.
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