pcNewsWire – Bowmore Exploration Ltd. (TSX-V: BOW), which will begin trading Monday June 26, 2017 as Osisko Metals Incorporated on a 3:1 consolidated basis, has engaged Canaccord Genuity Corp. for a bought deal of 18,750,000 units at $0.80 per unit (post-consolidation basis) for gross proceeds of $15,000,000.
Bowmore Exploration will also be conducting a concurrent non-brokered private placement of up to 3,333,333 flow-through shares at $0.90 per FT share for gross proceeds of C$3,000,000, as well as up to 8,750,000 units on the same terms as the brokered offering for additional gross proceeds of $7,000,000.
Osisko Gold Royalties Ltd. (TSX/NYSE: OR) is a significant shareholder of the company with approximately 20.5% ownership.
NOT FOR DISEMMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
BOWMORE EXPLORATION LTD. (TO BE RENAMED OSISKO METALS INCORPORATED) ANNOUNCES BOUGHT DEAL PRIVATE PLACEMENT FINANCING
(Montréal, Québec – June 23, 2017) Bowmore Exploration Ltd. (TSX-V: BOW) (the “Company”), which will begin trading Monday , June 26, 2017 as Osisko Metals Incorporated on a 3:1 consolidated basis, is pleased to announce that it has engaged Canaccord Genuity Corp. (the “Underwriter”) on behalf of a syndicate of underwriters to complete a private placement financing (the “Brokered Offering”), on a bought deal basis, of 18,750,000 Units of the Company (the “Units”) at an issue price of C$0.80 per Unit (post-consolidation basis) for gross proceeds of C$15,000,000. Each Unit shall consist of one common share of the Company and one half of one common share purchase warrant (each whole such warrant, a “Warrant”). Each Warrant shall be exercisable into a common share of the Company at an exercise price of C$1.00 for a period of 24 months. The number of Units and the Unit Price assumes that the previously announced three for one share consolidation is completed and the Units are being issued on a post-consolidation basis.
The Underwriter will have the option, but not the obligation, exercisable in whole or in part at any time prior to the closing of the Brokered Offering, to increase the size of the Brokered Offering by up to an additional 2,812,500 Units at the issue price for total proceeds of C$17,250,000.
The Company will also be conducting a concurrent non-brokered private placement (the “Non-Brokered Offering”) of up to 3,333,333 flow-through shares of the Company at a price of C$0.90 per flow through common share, for gross proceeds of C$3,000,000, as well as up to 8,750,000 Units on the same terms as the Brokered Offering for additional gross proceeds of C$7,000,000.
An amount equal to the net proceeds from the sale of Units pursuant to the Brokered Offering and the Non-Brokered Offering will be used by the Company for exploration activities and general working capital purposes. An amount equal to the gross proceeds from the sale of flow-through shares pursuant to the Non-Brokered Offering will be used to incur eligible expenses.
The securities to be issued pursuant to the Offering and the Non-Brokered Offering will be offered and sold by way of private placement exemptions in all provinces and jurisdictions of Canada.
The Offering and the Non-Brokered Offering are subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. Closing is expected on or about July 14, 2017. All securities issued in connection with the Offering and the Non-Brokered Offering will be subject to a four month hold period.
Bowmore Exploration Ltd (to be named “Osisko Metals Inc.”) (an Osisko group company) is a Canadian base metal exploration and development company exploring to create value in the zinc space in Canada. In 2017, the Company acquired 40,000 hectares in the Bathurst Mining Camp (“BMC”), a major zinc-lead-silver producing district. The objective is to develop a multi-deposit model with historical resources in the BMC that would feed a central concentrator. Several deposits are currently being reviewed. In Quebec, the Company acquired 42,000 hectares that cover 12 grass-root zinc properties that will be selectively advanced. In parallel, Osisko Metals will be monitoring zinc-oriented peers for other opportunities. Osisko Gold Royalties Ltd. (OR:TSX / NYSE) is a significant shareholder of the Company with approximately 20.5% ownership.
For further information on BOWMORE, visit www.bowmorexploration.com or contact:
President & CEO
BOWMORE Exploration Ltd.
Executive Vice President Finance & CFO
BOWMORE Exploration Ltd.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.