- Candelaria Mining (CAND) has announced a C$25 million private placement
- The company will offer units priced at $0.45 per unit for proceeds of up to $25 million
- Candelaria will use the proceeds to fund construction and exploration at Pinos Gold Mine and exploration at the Caballo Blanco Project
- Candelaria Mining is a gold exploration company with two 100 per cent-owned projects in Mexico
- Candelaria (CAND) closed the day down 6.89 per cent trading at $0.54 per share
Candelaria Mining (CAND) has announced a C$25 million private placement.
The company will offer units priced at $0.45 per unit for proceeds of up to $25 million.
Each unit will consist of one Candelaria common share and one common share purchase warrant.
Each warrant entitles the holder to acquire one Candelaria common share for $0.65 for 24 months following the closing of the offering.
Candelaria will use the proceeds to fund construction and exploration at Pinos Gold Mine, exploration at the Caballo Blanco Project and for general corporate purposes.
The company received aggregate commitments of approximately $13 million from certain investors, including Agnico Eagle Mines (AEM).
Agnico Eagle intends to subscribe to a number of units equivalent to owning 9.95 per cent of Candelaria’s common shares outstanding on a partially diluted basis after giving effect to the offering.
Agnico Eagle currently owns 7.9 per cent of the company’s common shares.
Mike Struthers, Candelaria’s CEO, commented,
“This is the start of a very exciting year for Candelaria as we evolve from an explorer to a producer in a little over 12 months, and as we execute an exciting exploration program at the company’s flagship asset in the Caballo Blanco district. We’re grateful for the continued support of our key shareholders, including Agnico Eagle, and I look forward to providing regular updates on our ambitious plans for this year.”
The offering is scheduled to close on or about May 14, 2021.
Echelon Wealth Partners is acting as sole agent and bookrunner for the private placement.
The company granted Echelon the option to increase the offering by up to 15 per cent at Echelon’s discretion until 48 hours prior to the closing of the offering.
Candelaria Mining is a gold exploration company with two 100 per cent-owned projects in Mexico.
Candelaria (CAND) closed the day down 6.89 per cent trading at $0.54 per share.