Wallbridge Mining (TSX: WM) this morning announced that it is conducting a bought deal financing to the tune of $56.0 million following yesterdays transaction announcement with Kirkland Lake Gold (TSX: KL). The company will see its common shares sold at a price of $1.15 under the financing.
The financing will see a total of 49.0 million common shares of the company sold, with no warrant being offered within the financing. An option has also been granted to expand the financing by up to 15.0% for a period of thirty days following the closing of the transaction.
Notably, Kirkland Lake reaffirmed its commitment to being a 9.9% equity holder in Wallbridge, indicating that they will be exercising their participation rights to increase their position in the company to maintain its 9.9% ownership.
Net proceeds from the financing are expected to be used to fund the development of the firms Fenelon Gold project, along with general corporate purposes. The financing is expected to close by October 2, 2020.
Wallbridge Mining last traded at $1.30 on the TSX.
Information for this briefing was found via Sedar and Wallbridge Mining Company. 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
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