An agreement with Sprott Securities will help provide Hillsborough Resources (TSE) with sufficient funds to expand its 63%-owned Quinsam coal mine near Campbell River, B.C.
The company will issue 2.4 million special warrants at $1.95 each under a guaranteed agency agreement for gross proceeds of $4.7 million. The special warrants are exchangeable for one share at no additional cost.
Concurrent with this financing, Hillsborough will raise additional funds through a further offering of up to 2.6 million common and/or flow-through shares.
The company is expanding its underground mining and coal-washing operations at Quinsam to 1.2 million thermal tonnes per year, up from the current annual capacity of 600,000 tonnes.
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