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Mawson Resources seeks to raise up to $5M through brokered private placement

The company has granted Red Cloud an over-allotment option, which if exercised in full, will raise an additional $2 million

MAWSON RESOURCES LTD - Mawson Resources seeks to raise up to $5 million through brokered private placement
The company plans to use the proceeds for further exploration of the company’s properties located primarily in Finland, and for general working capital

Mawson Resources Limited (TSE:MAW) (OTCMKTS:MWSNF) announced Wednesday that it is seeking to raise up to $5 million through a brokered private placement.

In a statement, the Nordic exploration company with a focus on its flagship Rajapalot and Rompas gold projects in Finland, said it has inked a pact with Red Cloud Securities to act as lead agent in a brokered private placement to sell up to 31,250,000 units at a price of $0.16 per unit, for gross proceeds of up to $5 million.

Mawson Resources plans to use the proceeds for the further exploration of the company’s properties located primarily in Finland, and for general working capital.

READ: Mawson Resources says test results from Rajapalot project show over 90% gold and cobalt liberation

Each unit will consist of one common share and one-half of one common share purchase warrant with each whole warrant exercisable at a price of $0.24 per share for a period of two years from the closing of the private placement.

The company said all securities issued in connection with the offering will be subject to a statutory four-month hold period.

The company has granted Red Cloud an over-allotment option, exercisable in full or in part at any time up to five days prior to the closing of the offering, to sell up to an additional 12,500,000 units at the issue price and on the same terms as the offering. If this option is exercised in full, an additional $2 million will be raised, resulting in aggregate gross proceeds from the offering of $7 million.

Mawson said the offering will not affect control of the company. It also said company insiders may buy up to 937,500 units for an aggregate of $150,000, representing 0.66% of the company's issued share capital.

The closing of the offering is subject to certain conditions including, but not limited to, regulatory approvals, including the thumbs-up from the Toronto Stock Exchange.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

Quick facts: Mawson Gold Limited

Price: 0.395 CAD

TSX:MAW
Market: TSX
Market Cap: $100.71 m
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