Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) announced that it has entered into an agreement with Haywood Securities, as lead underwriter and sole bookrunner, in which Midnight Sun will sell on a "bought deal" basis 7,408,000 company units, at a price of C$1.35 per unit, for total gross proceeds of C$10,000,800.
The exploration company said net proceeds from the sale will be used by for advancing exploration across the company’s Zambian exploration projects and for working capital and general corporate purposes.
Each unit will consist of one company common share plus one-half of one common share purchase warrant, with each warrant entitling the holder to acquire one Midnight Sun Mining common share at a price per warrant share of C$2.00 for a period of 24 months from the closing date.
The company has also agreed to grant the underwriters an option to purchase up to an additional 15% of the offering at the issue price for further gross proceeds to the company of up to C$1,500,120.
As well, Midnight Sun Mining has agreed to pay the underwriters a cash commission equal to 6.0% of the gross proceeds from the offering and issue to the underwriters transferable compensation options entitling the underwriters to purchase up to that number of common shares as is equal to 6.0% of the total number of units sold under the offering at a price per such common share that is equal to the issue price for a period of 24 months from the closing date of the offering.
The units to be issued under the offering pursuant to the LIFE Exemption will be offered to purchasers in each of the provinces of Canada, except Québec.
The offering is expected to close on or about October 28, 2025, and units issued as part of the offering will be subject to a hold period in Canada expiring four months and one day from the offering’s closing date.