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Victoria Gold announces CAD 30 million bought deal financing

Mining News - Published on Fri, 15 Mar 2019

Image Source: proactiveinvestors.co.uk
Victoria Gold Corp announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis, a combination of common shares and flow-through common shares to provide the Company with gross proceeds of at least approximately CAD 30 million. The Common Shares will be offered at a price of CAD 0.44 per Common Share, with minimum gross proceeds of CAD 30,008,000 and maximum gross proceeds of CAD 32,555,900. The Flow-Through Common Shares will be offered at a price of CAD 0.53 per Flow-Through Common Share with up to CAD 15,004,300 of gross proceeds. In the event that no Flow-Through Common Shares are subscribed for, the Underwriters have agreed to buy the number of Common Shares to provide the Company with gross proceeds of approximately USD 30 million. The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Common Shares to cover over-allotments, if any. The Offering is expected to close on or about April 2, 2019 and is subject to Victoria receiving all necessary regulatory approvals.

The net proceeds from the sale of the Common Shares will be used for construction and operations of the Eagle Gold Mine and general corporate purposes.

The gross proceeds from the sale of the Flow-Through Common Shares will be used for expenditures which qualify as Canadian Development Expenses ("CDE") within the meaning of the Income Tax Act (Canada)). The Company will renounce such CDE with an effective date of no later than December 31, 2019. The Securities will be offered by way of a short form prospectus in each of the provinces of Canada, excluding Quebec and may also be offered by way of private placement in the United States. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
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