O3 Mining (TSXV: OIII) has entered an agreement with a syndicate of underwriters to raise $35 million (upsized from $30 million) for exploration at its projects in Quebec and for working capital and corporate expenses.
The bought deal private placement offering co-led by Cormark Securities, Sprott Capital Partners and Canaccord Genuity, includes 4.7 million flow-through units, priced at $4.30 each, as well as 6.4 million regular units, priced at $2.35 a unit, for total gross proceeds of $35 million.
Each flow-through unit consists of one flow-through share and half of a warrant; each regular unit is made up of a share and half of a warrant. The warrants are exercisable at $3.25 for a 24-month period following closing, which is expected around June 18.
The underwriters also have the option to sell up to an additional 638,310 units for up to 48 hours prior to closing. O3 Mining may also issue up to $2 million worth of units to pre-determined buyers of the stock.
Gross proceeds from the flow-through portion are intended for eligible exploration expenses at the company’s projects in Quebec. Proceeds from the sale of regular units are intended for working capital and corporate expenses.
O3 Mining, part of the Osisko group of companies, wholly owns 4,350 sq. km of ground in Quebec and a further 250 sq. km in Ontario – this includes 610 sq. km in Val d’Or and over 50 km of strike length of the Cadillac-Larder Lake fault.
The company’s assets in Quebec include the Malartic, Alpha and East Cadillac properties, where it is planning to drill a total of 50,000 metres this year.
O3 Mining has traded over the last year at between $1.06 and $4.00 per share and at press time in Toronto was trading at $2.47.
The junior exploration company has 22 million common shares outstanding for a $116-million market capitalization.
— This article first appeared in the Canadian Mining Journal.
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