First Cobalt Corp (CVE:FCC) announced Friday that it has closed a bought-deal offering that raised more than $9.7 million.
In a statement, the company said it intends to use the net proceeds for the advancement of the First Cobalt Refinery and for general corporate purposes.
The offering was conducted by a syndicate of underwriters led by Eight Capital, together with CIBC World Markets Inc, Canaccord Genuity Corp, Red Cloud Securities Inc, and Mackie Research Capital Corporation.
READ: First Cobalt signs a cobalt supply deal with Glencore for its refinery in northern Ontario
It consisted of the sale of 31,533,000 units — including the full exercise of the over-allotment option by the underwriters — at C$0.31 per unit for aggregate gross proceeds of $9,775,230.
Each unit consisted of one common share and one-half of one common share purchase warrant. Each warrant is exercisable into one common share at $0.50 per common share for 24 months from the closing of the offering.
The underwriters received a cash commission equal to 6% of the gross proceeds and 1,891,980 compensation warrants with each compensation warrant exercisable to acquire one common share at the offering price for 24 months from the closing.
The company is the owner of North America’s only permitted cobalt refinery located in Ontario, which could produce over 25,000 tonnes of cobalt sulfate per year from third-party feed.
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