Thor Explorations Ltd (CVE:THX) announced Friday it has closed the first tranche of a brokered private placement raising a total of C$12.5 million that will fund two projects in Africa.
The Vancouver-based company said it has issued 69,479,167 common shares at C$0.18 each. After the closing, the total number of Thor shares outstanding is 615,126,612. H&P (Advisory) Limited and Paradigm Capital Inc acted as Joint Lead Agents to the placement and received a cash commission on 6% of the gross proceeds.
Thor said it intends to use the net proceeds to fund further exploration drilling of the Segilola Gold Project underground resource in Nigeria and also to drill identified satellite targets in proximity to Segilola within the project exploration licence and the company’s surrounding exploration licences. The proceeds also will be used to progress exploration at Thor’s prospective Douta Gold Project in Senegal, and for general working capital purposes.
“The private placement received strong institutional support, further validating the belief in the upside potential in the Segilola Gold Project held by the company,” Thor CEO Segun Lawson said in a statement. “The company is also excited and well-positioned to advance its prospective Douta Project in Senegal.”
In connection with the placement, Thor said the Joint Lead Agents arranged for each subscriber to purchase from certain selling shareholders, one common share for every two shares acquired under the placement as part of a secondary offering.
The company said 37,774,265 additional common shares were purchased by the subscribers from the selling shareholders at $0.16 each. Such shares, together with the common shares distributed under the private placement, will be subject to a four-month and one day hold period expiring on November 10, 2020.
Segun said that the selling shareholders are mainly non-investing entities that received shares as part of the consideration in the historic purchase transactions of the properties in Nigeria and Senegal.
Due to some administrative complexities related to the coordination of the private placement with the secondary offering, Thor said it is seeking to shortly close an additional tranche of the private placement for $1,050,000 subject to exchange approval.
With the full funding of the Segilola Gold Project already fully secured, Segun said construction has been progressing as planned with the first gold pour scheduled for the second quarter of 2021
“The closing of this offering allows Thor to unlock further value through exploration in and around Segilola and at Douta in Senegal,” the CEO added. “Drilling at both projects will continue throughout the year and we look forward to updating the market with our results.”
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