1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) has closed its previously announced bought deal financing, raising gross proceeds of C$35.65 million, including the full exercise of the underwriters' over-allotment option.
The financing consisted of 7.81 million units priced at C$0.64 each, 27.31 million Canadian development expenses flow-through units priced at C$0.793 each, and 11.96 million Canadian exploration expenses flow-through units priced at C$0.752 each.
The offering was underwritten by a syndicate led by Haywood Securities as lead underwriter and sole bookrunner, with BMO Nesbitt Burns, Roth Canada, and Velocity Trade Capital participating as co-underwriters.
Each unit comprises one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at C$1 until July 29, 2028, subject to customary anti-dilution adjustments.
1911 Gold said it intends to use the proceeds to fund ongoing exploration and development activities at its True North Gold Project, as well as technical studies and working capital.
The company also announced it paid the underwriters a cash commission of C$2.139 million, representing 6% of the gross proceeds from the offering, and issued 2.82 million non-transferable compensation options. Each compensation option is exercisable at C$0.64 per share until July 29, 2028.