Monarch Gold Corp (TSX: MQR) announced this morning that it will be conducting a bought deal private placement, co-lead by Stifel GMP and Sprott Capital Partners. The financing will see gross proceeds of just over $7.0 million raised for the exploration firm, with all units being sold on a flow through basis.
Two units exist for the offering, with the first being referred to as Quebec Flow Through Units. Priced at $0.72 per unit, the Quebec flow through units contain one common share and one half of a purchase warrant, with an exercise price of $0.60 for a period of 24 months from the date of issue. A total of 4.87 million of these units are available under the offering.
The other unit available is referred to simply as a flow through unit, with a price per unit of $0.57, of which there are 6.15 million units available. Each of these units also consists of one common share and one half of a common share purchase warrant, with the warrants having the same terms as in the Quebec flow through units.
An over allotment option has also been granted, with the underwriters eligible to increase the offering by up to $3 million within 48 hours prior to the closing of the initial bought deal. Proceeds from the financing are to be used for exploration on the firms Wasamac and McKenzie Break projects located in Quebec.
The financing is expected to close by September 17, 2020.
Monarch Gold last traded at $0.48 on the TSX.
Information for this briefing was found via Sedar and Monarch Gold Corp. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.