- Minera Alamos (MAI) has raised approximately C$15 million to advance construction of its Santana gold project in Sonora, Mexico
- The company issued a total of 23,810,000 common shares at a price of $0.63 each, which includes an underwriter’s over-allotment option of 3,175,000 common shares
- National Bank Financial acted as sole underwriter for the offering, and received a cash commission worth six per cent of the gross proceeds along with 714,300 broker warrants
- The proceeds will also be used for exploration activities at the company’s other projects in Mexico
- Minera Alamos (MAI) is currently steady at 70 cents per share
Minera Alamos (MAI) has raised approximately C$15 million to advance construction of its Santana gold project in Sonora, Mexico.
Under the terms of the financing, which was originally announced on on August 18, the gold development company issued a total of 23,810,000 common shares at a price of $0.63 each.
National Bank Financial acted as the sole underwriter for the offering, and exercised its over-allotment option to the value of 3,175,000 common shares.
As consideration for its services, Minera Alamos granted a cash commission to National Bank Financial worth six per cent of the total amount raised, along with 714,300 broker warrants exercisable at a price of $0.63 per share until September 3, 2021.
All of the securities issued in connection to the financing are subject to a four month holding period, which expires on January 4 next year.
With the financing now complete, Minera Alamos also intends to use a portion of the proceeds to fund further exploration activities at its other wholly owned development projects in Mexico, as well as for general corporate purposes.
Doug Ramshaw, President of Minera Alamos, said he is pleased to welcome a number of new institutional investors as shareholders of the company.
“The financing has provided working capital that will allow Minera Alamos to not only complete its ongoing construction of the Santana gold mine, but also aggressively advance the newly acquired Cerro de Oro gold project in Zacatecas,” he added.
The company’s wholly owned Santana open-pit, heap-leach development project is anticipated to have its first gold production in early 2021.
Minera Alamos (MAI) is currently steady at $0.70 per share at 2:06pm EDT.