viewMawson Gold Limited

Mawson Resources' previously announced placing is oversubscribed by C$1M to stand at C$6M

Net proceeds will be used for "exploration on the company's exploration properties, the firm said

The company will now issue 37.5 million units at C$0.16 each, which is a 3.2% premium to Wednesday's closing price

Mawson Resources Ltd (TSE:MAW) said its previously announced placing of C$5 million had been oversubscribed and it now stands at C$6 million. 

After the market close yesterday (October 16), the Finland-focused resource group revealed it will now issue 37.5 million units at C$0.16 each, which is a 3.2% premium to Wednesday's closing price.

Net proceeds will be used for "exploration on the company's exploration properties, located primarily in Finland, and for working capital and general corporate purposes," the company said in the regulatory statement.

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

The brokered part of the offering is led by Red Cloud Securities on behalf of a syndicate, which includes Haywood Securities Inc, Canaccord Genuity Corp and Eight Capital.

A portion will also be non-brokered, which will include the participation of certain Mawson shareholders who have exercised their pre-existing pre-emptive rights.

Red Cloud has also been granted an overallotment option, which is exercisable in full or part, up to five business days before closing, to sell up to a further 12.5 million units at C$0.16. If that is exercised in full, a further C$2 million will be raised, resulting in total gross proceeds of C$8 million.

Each unit consists of one Mawson share and one-half of one share purchase warrant. Each whole warrant will allow the holder to buy one company share for C$0.24 for 24 months following closing of the offering, which is now expected to take place on October 30 this year.

Certain officers and directors of the firm are taking part to the tune of a total of 825,000 units, Mawson also revealed. The total number of shares issuable to them, assuming the exercise of the warrants, represents 0.87% of Mawson's share capital.

Mawson's flagship property is the Rajapalot project in Finnish Lapland, a few kilometers south of the Arctic circle, where both high-grade gold and cobalt have been discovered over a camp-scale area of more than 10 sq km.

Contact the author at giles@proactiveinvestors.com

Quick facts: Mawson Gold Limited

Price: 0.39 CAD

Market: TSX
Market Cap: $99.44 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mawson Gold Limited named herein, including the promotion by the Company of Mawson Gold Limited in any Content on the Site, the Company...


Mawson Gold's Michael Hudson hails strong start to drilling at Sunday Creek...

Mawson Gold Ltd's (TSE:MAW) (OTCPINK:MWSNF) Michael Hudson speaks to Proactive's Andrew Scott after reporting a strong start to drilling in the famous Victoria goldfields in Australia, with the first hole at its Sunday Creek project hitting 15.2 metres at 3.7 grams per ton (g/t) gold from...

2 weeks, 5 days ago

2 min read