- MacDonald Mines (BMK) has revealed a further increase to its non-brokered private placement, which will now total up to C$4 million
- The company intends to issue an unspecified number of charity flow-through units at a price of 13.5 cents as well as regular flow-through units at a price of 10 cents
- Each unit will be comprised of one common share in the company and half of one common share purchase warrant
- The proceeds raised under the offering will be used to fund exploration and drilling activities at the company’s SPJ gold project in Ontario
- MacDonald Mines (BMK) is up 10 per cent and is trading at 11 cents per share at 2:52pm EDT
MacDonald Mines (BMK) has revealed a further increase to its non-brokered private placement, which will now total up to C$4 million.
Under the terms of the placement, which was originally announced on July 9, the company intends to issue an as-yet unspecified amount of charity flow-through units at a price of 13.5 cents each, as well as regular flow-through units at a price of 10 cents.
These units will consist of one common share and half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share at a price of 20 cents, exercisable over a period of 24 months.
However, the company’s shares trade on the TSX Venture Exchange at a price equal to or more than $0.35 for a period of 10 consecutive trading days, the expiry date of the warrants may be brought forward.
The company had initially sought to raise $2 million, but following significant interest from investors, the placement was subsequently increased to $3.5 million on July 10. This has now been increased again to up to $4 million.
In connection with the offering, Eventus Capital has been appointed as a finder and will receive a cash commission worth seven per cent of the total funds raised along with compensation warrants worth seven per cent of the total amount sold.
The proceeds raised under the offering will be used to fund exploration and drilling activities at MacDonald Mines’ 18,340-hectare SPJ gold project located 20 kilometres northeast of Sudbury, Ontario.
The SPJ project hosts the past-producing Scadding Gold Mine, which previously generated 914 kilograms of gold from 127,000 tonnes of material grading 7.2 grams per tonne of gold.
The company’s assessment of geological material at the Scadding Deposit, combined with exploration results to date, suggest that the SPJ project could host a significant gold-rich deposit.
MacDonald Mines (BMK) is up 10 per cent and is trading at 11 cents per share at 2:52pm EDT.
