Extorre Gold Mines (TSX:XG) has closed its bought deal private placement financing announced early last week, for proceeds of around $40.5 million, to advance its Cerro Moro project in Santa Cruz, Argentina.
The company has issued 9.1 million common shares at a price of $4.45 per common share.
The underwriters received a cash commission of 6% of the gross proceeds raised through the offering and broker warrants equal to 5% of the shares issued.
Each broker warrant can be used to acquire one common share of the company at a price of $5.00 for a period of 12 months from closing.
Shares issued are subject to a hold period, which will expire four months and one day from the date of closing.
The company will use the funds to extend the discovery drilling program at Cerro Moro, as well as to advance engineering programs, and for general exploration.
Extorre Gold Mines is a Canada-based company focused on advancing the bonanza grade Cerro Moro Project in Argentina. The Cerro Moro Gold-Silver Project in Santa Cruz Province, Argentina, is 100% owned by Extorre, with the Santa Cruz Government Mining Company, Fomicruz S.E. entitled to a 5% interest, on completion of mine permitting.