Fox Tungsten Ltd (TSX-V:FOXT, OTC:HPYCF, FRA:1HC) announced it has entered into an agreement with Stifel Nicolaus Canada, acting as co-lead underwriter alongside PowerOne Capital Markets Limited and as sole bookrunner, in connection with a bought deal private placement expected to raise approximately C$11.1 million in gross proceeds.
Fox Tungsten said it intends to use the net proceeds from the hard dollar units to advance exploration at its Fox Tungsten Project, in British Columbia, Canada, as well as for other exploration initiatives, working capital, and general corporate purposes.
The offering will consist of 6.1 million hard dollar units priced at C$0.165 per unit and 42 million charity flow-through units priced at C$0.24 per unit.
The company has also granted the underwriters an option to sell up to an additional C$1.65 million of offered securities on the same terms, exercisable in whole or in part until closing.
Each hard dollar unit will include one common share and one-half of a common share purchase warrant, while each charity flow-through unit will consist of one flow-through share and one-half of a warrant.
Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of C$0.22 for a period of 36 months following the closing of the offering.
The financing is expected to close by April 23.