District Metals Corp (CVE:DMX) (FRA:DFPP) announced that it intends to raise up to C$3 million via a private placement in an agreement with Haywood Securities Inc, which will act as the sole lead agent.
District Metals said net proceeds from the offering will be used for exploration at its Tomtebo project in Sweden, and for working capital and general corporate purposes.
READ: District Metals is putting the historic Bergslagen mining district on the international map with its Tomtebo project in Sweden
The offering will involve District Metals issuing 10 million units at a price of C$0.30 per unit. Each unit will consist of one common share in the company and one-half of one common share purchase warrant, which will entitle the holder to acquire one common share in the company at a price of C$0.42 for a period of 24 months from the closing date.
The company noted that if, at any time before the expiry date of the warrants, the volume-weighted average trading price of the common shares in the company on the TSX Venture Exchange is equal to or greater than C$0.70 for 10 consecutive trading days, District Metals may, within 15 days of the occurrence of such event, deliver a notice to the holders of warrants accelerating the expiry date of the warrants to the date that is 30 days following the date of such notice.
District Metals has also granted the agents an option, exercisable in whole or in part by giving notice to the company at any time up to 48 hours prior to the closing date, to sell up to an additional 15% of units at the issue price.
The offering is expected to close on or about December 30, 2020.
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