US Gold Corp (NASDAQ:USAU) announced it had signed a securities purchase agreement with select investors to raise about $10.2 million through a registered direct offering of its common stock and warrants.
The company will issue 1,457,700 shares of common stock at $7 per share and accompanying warrants to purchase 728,850 shares at an exercise price of $9.50 per share, it said in a statement.
The warrants, exercisable six months after issuance, will expire three years from their initial issue date.
The transaction is expected to close around December 2, subject to customary conditions, U.S. Gold added.
The Wyoming-based company’s flagship CK Gold project, located in southeast Wyoming, is fully permitted and supported by a preliminary feasibility study.
U.S. Gold also has two exploration projects: the Keystone Gold project on the Cortez Trend in Nevada, about 11 miles south of Nevada Gold Mines’ Cortez Hills Complex, and the Challis Gold project in Idaho.