District Metals Corp (CVE:DMX) (FRA:DFPP) announced Monday it is upsizing its previously announced financing from C$3 million to C$4.5 million to fund exploration at its flagship Tomtebo polymetallic project in Sweden.
Led by Haywood Securities, the offering will now consist of 15 million units priced at C$0.30, with each unit consisting of one District share and one-half of one warrant exercisable at C$0.42 for a two-year period following closing.
The financing contains an acceleration clause that is triggered if the volume-weighted average share price is equal to or more than C$0.70 for 10 consecutive trading days.
Additional proceeds will be used for working capital and general corporate purposes, District said in a statement.
Toronto-based District recently kicked off a ground gravity survey at Tomtebo in south-central Sweden -- the first time such an exploration technique has been used at the property.
The offering is expected to close by December 30.
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