Nighthawk Gold Corp. (TSX: NHK) announced today that it has entered an agreement to conduct a bought deal financing for aggregate proceeds of $20 million. The agreement was made with a syndicate of underwriters led by Sprott Capital Partners.
The offering is raised from 8.6 million flow-through units at $1.51 per unit and 6.1 million non-flow-through units at $1.15 per unit. Each non-flow-through unit contains one non-flow-through common share and half of one common share purchase warrant.
On the other hand, each flow-through unit consists of one flow-through common share and half of one common share purchase warrant to be issued on a non-flow-through basis. Each warrant is exercisable to purchase one corresponding common share at $1.50 per share within 2 years.
Should all units be purchased and warrants exercised, the company will be selling a total of 22.05 million shares. As of Q1 2021, Nighthawk has 60.65 million shares issued and outstanding.
Nighthawk also granted the option to purchase up to an additional 15% more units within 30 days from the closing.
The company said proceeds from the sale of flow-through units will be used for exploration expenditures on its Indin Lake gold property. Proceeds from the non-flow-through units will be used for general and administrative expenses.
The offering is scheduled to close on July 7, 2021, subject to customary conditions and approvals.
Nighthawk Gold Corp. last traded at $1.26 on the TSX.
Information for this briefing was found via Sedar and Nighthawk 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.