Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) has upsized its private placement to C$7 million from C$5 million, citing strong investor demand.
The offering will consist of up to 66.7 million units priced at C$0.105 each, with each unit comprising one common share and one-half of a warrant.
Each full warrant will entitle the holder to purchase an additional common share at C$0.15 for a period of 36 months following the closing date, which is expected on or about May 2.
Canadian investor Eric Sprott has made a lead order in the offering, Excellon said.
Red Cloud Securities Inc. is acting as lead agent and sole bookrunner on behalf of a syndicate that includes Velocity Trade Capital Ltd. The agents have an option to sell up to an additional 9.5 million units, which could generate up to C$1 million in additional gross proceeds.
Proceeds from the financing will be used to advance development of the company’s Mallay Mine in Peru, as well as for working capital and general corporate purposes.