O3 Mining Inc (CVE:OIII) has closed its previously-announced "bought deal" brokered private placing, raising around C$40.2 million gross, the firm said in a statement.
The offering was led by Cormark Securities Inc, Sprott Capital Partners, and Canaccord Genuity Corp, as co-lead underwriters and joint bookrunners, on behalf of a syndicate of underwriters.
Issued were over 4.6 million flow-through (FT) units at C$4.30 each for total gross proceeds of approximately C$20 million, the resource group, which is focused on Québec and Ontario, said.
Around a further 8.59 million units at a price of C$2.35 each were issued for aggregate gross proceeds of around C$20.2 million, including the exercise in full of the underwriters' option and additional subscribers on the firm's president's list, it added.
Each FT unit consists of one share and one-half of a share purchase warrant. Each unit consists of one share and one-half of one warrant. Each warrant entitles the holder to purchase one company share at an exercise price of C$3.25 for 24 months following closing.
The gross proceeds from the sale of the FT units will be used to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures", said the company.
The net proceeds from the sale of the units will be used for working capital and general corporate purposes, it added.
Contact the author at [email protected]