Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) has announced a brokered private placement to raise up to $5 million, with Red Cloud Securities leading as the agent.
The offering includes the sale of up to 18.5 million units at $0.135 each, expected to raise $2.5 million.
Each unit consists of one common share and a purchase warrant, allowing the holder to buy an additional share at $0.18 within 24 months.
Additionally, up to 16.1 million flow-through units will be offered at $0.155 each, also targeting $2.5 million.
Each flow-through unit comprises a flow-through share and half a warrant, with the half-warrant enabling the purchase of an additional share at $0.23 for 24 months.
The funds raised will be used for general working capital, a new Preliminary Economic Assessment, and additional exploration of the Spanish Mountain Gold project to identify new targets and expand the company’s understanding of the resource.
Proceeds from flow-through shares will be used for Canadian exploration expenses and flow-through mining expenditures, which will be renounced to investors by the end of 2024.
The offering is expected to close around November 13, 2024, pending customary regulatory approvals.