Pasofino Gold Announces $10.0 Million Bought Deal For Special Warrants

Pasofino Gold (TSXV: VEIN) this morning announced that it will be conducting a bought deal private placement lead by Stifel GMP. Priced at $0.30 per special warrant, the financing will see a total of 33.4 million warrants sold for gross proceeds of $10.0 million.

Each special warrant will be exchanged for one unit of the company, consisting of one common share and one half of a common share purchase warrant. Each whole warrant is good for a period of twelve months following the date of issuance, at a conversion price of $0.40 per share.

The need for a special warrant is the result of Pasofino not currently having an active base shelf prospectus filed with the BC Securities Commission. As a result, the conversion of the special warrants to units of the company will occur on the second business day following the day that a final receipt is obtained from the BCSC for the firms final short form prospectus. The conversion is to occur the earlier of this, and the date that is four months and a day following the close of the financing.

Further, if the conversion from special warrants to units does not occur within three months following the closing of the bought deal, each special warrant purchased by investors will be converted to 1.1 units of the company.

Net proceeds from the bought deal are to be used for the exploration and development of the firms Dugbe Gold project located in Liberia, along with working capital and general corporate purposes.

The bought deal is expected to close by September 10, 2020.

Pasofino Gold last traded at $0.39 on the TSX Venture.

Information for this briefing was found via Sedar and Pasofino Gold. The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.