Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) reported that it has amended the terms of its previously announced “bought deal” Listed Issuer Financing Exemption (LIFE) offering and private placement financing to increase the size of the offering to C$26.5 million.
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.
Under the terms of the upsized offering, Haywood Securities, as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters including Beacon Securities, Red Cloud Securities, and SCP Resource Finance LP, has agreed to purchase, on a "bought deal" basis,19,630,000 company units at a price per unit of C$1.35.
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$$3,975,075.
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, 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.