1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) said that it has increased the size of its previously announced bought-deal financing to gross proceeds of approximately $31 million, reflecting continued investor demand as the company advances its True North gold project in Manitoba.
Under the amended agreement, a syndicate of underwriters led by Haywood Securities, and including BMO Capital Markets (NYSE:BMO), Roth Canada and Velocity Trade Capital, agreed to purchase a combination of common share units and flow-through units for total gross proceeds of $31 million.
The financing includes standard units priced at $0.64 each, as well as flow-through units intended to fund eligible Canadian exploration and development expenditures. Each unit includes one common share and one-half of a warrant, with each full warrant exercisable at $1 per share for 24 months following closing.
The underwriters have also been granted an over-allotment option that could increase the size of the offering by up to 15% if exercised within 30 days after closing.
The offering is expected to close on or about July 14, subject to customary conditions and regulatory approvals, including approval from the TSX Venture Exchange.
1911 Gold said it plans to use the net proceeds to fund ongoing exploration and development activities at its True North Gold Project, conduct technical studies and support working capital requirements.