Gunnison is an in-situ recovery copper project in Cochise County and is on track to be the next new copper producer in the United States
"With access to over US$75 million in capital, Excelsior is ideally positioned to start construction this year, and we are supremely confident in the ability of our management team to execute and maintain our construction schedule," said Mark Morabito, chairman of the group.
"I want to thank our project financing partners, Triple Flag and Greenstone Resources for their commitment and support as we now move towards first production in 2019."
At closing, Excelsior has now received initial gross proceeds of US$20 million, comprising US$10 million of the US$65 million deposit (the "Stage 1 upfront deposit") under the terms of the stream agreement, and US$10 million proceeds from the placing.
The balance of the Stage 1 deposit will be provided in instalments at the request of Excelsior as it goes through construction.
As per the placing component, Excelsior has issued to Triple Flag over 13.8 million shares at a total subscription price of US$10 million, or equal to around $0.95 per share at current exchange rates.
The shares are subject to a four-month hold period that expires on March 31 next year.
For the stream, Excelsior has also issued to Triple Flag 3.5 million five-year share purchase warrants, beginning on November 30, 2018, which allows Triple Flag to purchase 3.5 million Excelsior at a strike price of C$1.50 each.
Excelsior is expecting a further US$9.4 million in financing proceeds from affiliates of Greenstone Resources L.P. following the terms of a previously announced subscription agreement.
The feasibility for Gunnison projected an after-tax NPV (net present value) of US$ 807 million and an IRR (internal rate of return) of 40% using a US$ 2.75 per pound copper price and a 7.5% discount rate.
Excelsior shares added 3.26% in Toronto to $0.95.