Vista Gold (TSX: VGZ) last night announced a bought deal financing. Originally pegged at US$8.0 million, the financing was subsequently increased to $13.5 million following strong demand from investors.
The financing, lead by H.C. Wainwright & Co, will see the company sell a total of 12.3 million units at a price of US$1.10 per unit. Each unit contains one common share and one half of a common share purchase warrant.
Each warrant is valid for a period of three years from the date of issuance, at an exercise price of US$1.25 per share. Notably, the warrants have no hold period attached to them.
An over-allotment option has also been granted, for up to an additional 1.8 million units of the company.
Proceeds from the financing are to be used to advance the firms Mt Todd project, with potential expenditures including further drilling and technical reports, and supporting the securing of a development partner. Proceeds are also to be used for working capital and general corporate purposes.
The financing is currently slated to close by July 12, 2021.
Vista Gold last traded at $1.48 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.
