Troilus Gold Corp (TSX:TLG, OTCQX:CHXMF) has revealed plans to raise up to C$15 million to advance exploration and development at its Troilus gold project in Quebec.
The junior resource firm entered into an agreement with Haywood Securities, acting on behalf of a consortium of underwriters, for the bought deal public offering.
Under the terms of the agreement, the underwriters, collectively known as "the Underwriters," have agreed to purchase a substantial number of securities.
A total of 28,580,000 units will be offered at a price of C$0.35 per unit. Each unit consists of one common share of the company and one-half of one common share purchase warrant, exercisable at C$0.50 per share for 24 months following the offering's closing.
As well, the offering includes 7,150,000 flow-through shares priced at C$0.42 per share and 4,550,000 Québec flow-through shares at C$0.44 per share.
This deal will bring in a total gross amount of C$15,008,000 for Troilus.
The additional over-allotment option gives the underwriters the discretion to purchase up to 15% more of the offered securities.
Additional proceeds generated from the sale will be used for working capital and general corporate purposes.
The formerly producing Troilus mine in Québec yielded over two million ounces of gold and approximately 70,000 tonnes of copper before it ceased production in 2010. Since acquiring the site in 2017, Troilus has demonstrated continued exploration success showcasing substantial growth potential of its gold resources, with a substantial land position within the Frotêt-Evans Greenstone Belt.
The offering is slated to close by November 20, 2023.