Northern Graphite Corp (TSXV: NGC) is looking to raise capital to announce its recently announced acquisitions of the Lac des Iles graphite mine and the Okanjande graphite deposit and related Okorusu processing plant. The company is looking to raise $20 million to help fund the purchases.
The company is currently looking to sell a total of 26.8 million subscription receipts of the company, on what it has deemed a “commercially reasonable efforts” basis. Each sub receipt is priced at $0.75 per each, and is exchanged for one unit upon certain conditions being met. Each unit contains one common share and one half of a common share purchase warrant priced at $1.10 per share, with warrants valid for two years from the date of issuance.
The offering, which is being lead by Sprott Capital Partners under a syndicate, also contains an over-allotment option for up to 4.0 million additional subscription receipts.
Funds being released to the company is conditional upon all conditions related to the proposed asset acquisitions being met.
Northern Graphite last traded at $0.83 on the TSX Venture.
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