Revival Gold (TSXV: RVG) this morning announced its latest round of financing. The firm is looking to conduct a non-brokered private placement, which will see a new institutional investor take an interest in the company.
The financing will see the company look to raise $10.0 million via the sale of units at a price of $0.65 per unit. Each unit contains one common share and one half of a common share purchase warrant. Warrants are valid for a period of two years from the date of issuance and contain an exercise price of $0.90 per share.
An over-allotment option has also been included in the financing, which could increase to total gross figure to $11.7 million.
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As part of the financing, Donald Smith Value Fund LP will take a “cornerstone” position in the company. However, no further information was provided on the size of the position being taken, or if it will meet early warning disclosure minimums.
The financing is expected to close January 25.
As of September 30, Revival Gold reported a cash balance of $2.9 million, while the quarter saw a total of $3.0 million in net cash used in operating activities, indicating that the firm by this point is likely low on cash overall.
Revival Gold last traded at $0.64 on the TSX Venture.
Information for this briefing was found via Sedar, and Revival Gold. 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.
