Much like Elevation Gold (TSXV: ELVT), Liberty Gold (TSX: LGD) appears to be desperate for cash, raising money at the first sign of bulls returning to the gold market. The company last night announced it would be conducting a large bought deal financing, before the firms equity even had much of a chance to react to the new bullish sentiment.
The financing, lead by National Bank Financial and BMO Capital Markets, will see the company raise a total of $30.0 million in gross proceeds. Proceeds will be raised via the sale of common shares at a price of $1.10 per each. A total of 27.3 million shares are expected to be sold under the offering, with no warrant included.
An over-allotment option has also been granted, enabling the underwriters to sell up to an additional 15% of shares under the offering.
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Proceeds from the financing are to be used for exploration of the Black Pine property, where it intends to drill 85,000 metres in 2022. Proceeds are also to be used at Goldstrike, where Liberty intends to drill 25,000 metres this year, as well as conduct baseline studies.
The offering is currently expected to close by March 25, 2022.
The company last reported a cash position of $17.5 million, as of September 30, 2021.
Liberty Gold last traded at $1.20 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
