Osino Resources Corp (CSE:OSI) is increasing the size of its previously announced financing to C$12.5 million after a key shareholder wanted to boost its stake.
The Namibian explorer was looking to raise just over C$10 million but an existing shareholder, RCF Opportunities Fund LP, said it will subscribe for nearly 3.2 million units of the offering.
RCF will now own 10.6% of Osino’s shares, plus an additional 1.6 million shares once warrants are exercised, which would increase its ownership to nearly 12.8% on a partially diluted basis.
The funds raised will be used towards Vancouver-based Osino’s 2020 exploration program in Namibia, where the firm is actively exploring the Twin Hills and Goldkuppe discoveries within the Karibib gold district.
Under the terms of the offering, each unit consists of one share and one-half of one warrant exercisable at C$1.05 for a 24-month period following closing. The offering contains a clause saying that if Osino’s share price should close at C$1.09 for five consecutive days in a nine-month period following closing, the company may accelerate the expiry date of the warrants to within a 30-day window pending shareholder notification.
The firm granted the underwriters and option to purchase another 1.9 million units on the same terms at any time up to 30 days post-closing, for market stabilization purposes and to cover any potential over-allotments.
RCF is a private investment fund based in Colorado.
The offer is expected to close by January 30.
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