Victory Metals (TSXV: VMX) this morning announced the closing of its final tranche of its private placement originally announced in December, raising gross proceeds of $18.0 million. With the closing of the placement, the company satisfies a closing condition of the firms merger with that of Nevada King Mining.
The placement as a whole saw a total of 32.8 million subscription receipts of the issuer sold at a price of $0.55 each. Each receipt will convert to one post-merger share of Victory Metals upon closing of the merger transaction, with no warrant being involved in the offering.
Proceeds from the offering are to be used to advance the firms development and exploration stage assets as well as for general corporate purposes.
With the closing of the offering, which was originally slated to be $8.0 million, the company will look to close the merger with Nevada King. The transaction, which is subject to customary closing conditions, is expected to be completed in the current quarter, at which point funds from the financing will be released from escrow.
Nevada King is currently the fourth largest land holder in Nevada, and is currently focused on the Atlanta Mine property. The property currently contains a measured and indicated resource of 460,000 ounces of gold, along with an inferred resource of 142,000 ounces of gold, with the resource area remaining open for further expansion.
Victory Metals last traded at $0.71 on the TSX Venture.
Information for this briefing was found via Sedar and Victory Metals. 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.
