HighGold Mining closes C$13.8M upsized bought deal financing

The company plans to use the funds for mineral exploration and corporate purposes, including expanding the scale of its Johnson Tract drill program in Alaska

HighGold - HighGold Mining closes C$13.8M upsized bought deal financing
CEO Darwin Green said with the closing of the financing, HighGold has C$23 million in working capital, placing the company in "a strong position to materially advance" its flagship Johnson Tract gold project, in Alaska

HighGold Mining Inc (CVE:HIGH) (OTCMKTS:HGGOF) revealed on Tuesday that it has closed its previously announced upsized bought deal offering of 7,976,975 shares at a price of C$1.73 per share to raise gross proceeds of C$13,800,166.75, which included the full exercise of the over-allotment option granted to the underwriters.

In connection with the offering, the mineral exploration company focused on high-grade gold projects in North America, said it has issued an additional 446,500 shares to an existing strategic shareholder of the company following the shareholder's election to exercise its participation right under an investor rights agreement. The participation shares were issued at a price of C$1.73 per participation share for gross proceeds of C$772,445.

"With the closing of the financing, HighGold has C$23 million in working capital, placing us in a strong position to materially advance our flagship Johnson Tract gold project in Alaska," HighGold Mining CEO Darwin Green said in a statement.

READ: HighGold Mining has an exciting exploration story, backed up by high grade ounces in the ground

"We are very pleased to welcome several new, large institutional shareholders to HighGold's registry. We are also grateful for the continued support of several existing major shareholders that participated in the financing. HighGold now looks forward to putting these funds to work," he added.

The company has two wholly-owned projects, which are found in the well-established mining jurisdictions of Alaska and Timmins, Ontario. It said it intends to use the net proceeds from the offering for exploration and general corporate purposes, including expanding the scope and scale of its recently initiated Johnson Tract drill program in Alaska.

The offered shares and the participation shares are subject to a four-month and one day hold period in Canada. The offering was made through a syndicate of underwriters led by Cormark Securities Inc, including Canaccord Genuity Corp, Stifel Nicolaus Canada, Haywood Securities and Sprott Capital Partners LP. The underwriters were paid a cash commission equal to 5% of the gross proceeds realized by the company from the offering.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

Quick facts: HighGold

Price: 2.95 CAD

Market: TSX-V
Market Cap: $144.85 m

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