- Appia Energy (API) has entered into an agreement with Research Capital Corporation
- Research Capital will purchase, on a bought-deal basis, securities for aggregate gross proceeds of $4,000,000
- The offering will consist of units of Appia at a price of $0.60 and flow-through units at a price of $0.70
- Appia is a Canadian company in the rare earth element and uranium sectors
- Appia Energy Corp. (API) opened trading at C$0.68 per share
Appia Energy (API) has entered into an agreement with Research Capital Corporation.
As sole underwriter and sole bookrunner, Research Capital will purchase, on a bought-deal basis, securities for aggregate gross proceeds of $4,000,000.
The offering will consist of units of Appia at a price of $0.60 and flow-through units at a price of $0.70.
Each unit will include one common share and one purchase warrant. Each flow-through unit will include one common share and one warrant. Each warrant will entitle the holder to acquire one common share at $0.75 for a period of 24 months following the closing of the offering.
The proceeds will be used for working capital requirements and other general corporate purposes. The gross proceeds from the sale of flow-through units will be used for exploration expenses on Appia’s mining projects.
Appia has also granted the underwriter an over-allotment option to increase the size of the offering by up to an additional 15% at any time on or before 48 hours prior to the closing of the offering.
The offering is scheduled to close on or about May 19, 2021.
Units issued under the offering will have a hold period of four months and one day.
The underwriter will receive an aggregate cash fee equal to 7% of the gross proceeds from the offering, including in respect of any exercise of the over-allotment option.
The company will also grant the underwriter compensation warrants equal to 7% of the total number of units sold.
Appia is a Canadian-based company in the rare earth element and uranium sectors. The company is currently focusing on delineating high-grade critical rare earth elements and uranium on the Alces Lake property, as well as prospecting for high-grade uranium in the prolific Athabasca Basin on its Loranger, North Wollaston, and Eastside properties.
Appia Energy Corp. (API) opened trading at C$0.68 per share.