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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

MAWSON RESOURCES LTD -
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 [email protected]

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Price: 0.145 CAD

TSX:MAW
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