pcNewsWire – Almaden Minerals Ltd. (TSX: AMM; NYSE MKT: AAU) has closed previously announced bought deal of 9,857,800 units at $1.75 per unit for gross proceeds of $17,251,150
The offering was co-led by Sprott Capital Partners and Cormark Securities Inc. on behalf of a syndicate of underwriters which included PI Financial Corporation and National Bank Financial Inc.
Proceeds will be used to advance the Tuligtic Project through continued engineering, permitting activities and exploration drilling, as well as for general corporate and working capital purposes.
ALMADEN MINERALS LTD. CLOSES $17.2 MILLION BOUGHT DEAL PRIVATE PLACEMENT
Vancouver, B.C. Almaden Minerals Ltd. (“Almaden” or the “Company”; TSX: AMM; NYSE MKT: AAU) is pleased to announce completion of the previously announced bought deal private placement. The Company issued a total of 9,857,800 units (“Units”) at $1.75 per Unit to raise gross proceeds of $17,251,150 (the “Offering”). The Offering was co-led by Sprott Capital Partners and Cormark Securities Inc. on behalf of a syndicate of underwriters which included PI Financial Corporation and National Bank Financial Inc. (collectively, the “Underwriters”). The Underwriters exercised in full their option to place an additional 1,285,800 Units over and above their commitment to place 8,572,000 Units as announced on May 5, 2017. Coeur Mining, Inc. (NYSE:CDE) (“Coeur”) acquired 2,856,000 Units of the Offering.
Each Unit consisted of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is transferable and entitles the holder to acquire one Common Share until June 1, 2020 at a price of $2.45.
The Offering was made by way of a private placement to qualified investors in certain provinces of Canada, and otherwise in those jurisdictions where the Offering could lawfully be made. All securities issued under the Offering are subject to a four month hold period expiring October 2, 2017 in accordance with applicable securities laws in Canada, and potentially additional restrictions under the laws of other jurisdictions in which the Offering may be made.
In connection with the Offering, the Underwriters were paid a cash fee equal to 6.0% of the gross proceeds of the Offering. As additional consideration, the Company granted the Underwriters non-transferable common share purchase warrants (the “Broker Warrants”) entitling the Underwriters to purchase up to 295,734 Common Shares at a price of $2.00 per share, expiring on June 1, 2019.
The net proceeds received by the Company are intended to be used to advance the Tuligtic Project through continued engineering, permitting activities and exploration drilling, as well as for general corporate and working capital purposes.
The offering is subject to the final approval of the Toronto Stock Exchange.
Almaden Minerals Ltd. owns 100% of the Tuligtic project in Puebla State, Mexico. Tuligtic covers the Ixtaca Gold-Silver Deposit, which was discovered by Almaden in 2010.
On Behalf of the Board of Directors,
Morgan J. Poliquin, Ph.D., P.Eng.
President, CEO and Director
Almaden Minerals Ltd.