Excelsior Mining Corp (TSE:MIN, OTCMKTS: EXMGF) unveiled encouraging news Wednesday as it announced that it has agreed to sell more than 13 million shares to London-based private equity firm Greenstone Resources LP for US$9.4 million.
The price is C$0.95 per share at current exchange rates.
Upon closing of the transaction and financing from Toronto-based Triple Flag Mining Finance Ltd, Greenstone will hold close to 114 million of Excelsior’s common shares, with a 48.56% stake.
Last month, Excelsior revealed a huge boost to the project, a US$75 million project financing package that sent shares surging.
Excelsior's flagship project is a fully-permitted, advanced staged, low cost, environmentally friendly in-situ recovery copper extraction project at the Gunnison Copper Project in Cochise County, Arizona.
The stock deal with Greenstone is related to a previously announced project financing package. It’s subject to Toronto Stock Exchange approval and the closing of the Triple Flag financing, according to the company.
Excelsior continues to push ahead with work at the Gunnison copper project in Cochise County, Arizona, where the company is poised to be a major long-term employer for the next 25 years.
Initial production from the US's next new copper producer is scheduled for 2019.
Both basic and detailed engineering are complete, according to the company.
Shares of Excelsior were at US$0.73 in OTC trading on Wednesday and at C$0.97 in Canada.
Contact Dennis Fitzgerald at [email protected]