Mawson Resources Ltd. (TSE:MAW) has closed its previously announced non-brokered privat placement financing of 15mln units at 40 cents per unit for gross proceeds of C$6mln.
Each unit consists of one common share of Mawson and one-half of one common share purchase warrant. Each whole common share purchase warrant is exercisable to acquire one additional common share of Mawson at 60 cents for a period of two years expiring on Dec. 2, 2018.
"We are pleased to close the private placement, and wish to thank the Sentient group and existing funds for their continued support. We also welcome our new shareholders. With drill permits recently received, we now can rigorously and systematically drill test the Rompas-Rajapalot gold discovery for the first time. Postfinancing, Mawson will hold more than $9-million cash, which will enable the company to execute a 10,000-to-13,000-metre drill program. Drill rigs are set to start turning over the coming weeks," said Michael Hudson, chief executive officer.
Under the private placement, Sentient Global Resources Fund IV LP, part of a group of funds which is an insider and control person of Mawson, has subscribed for 5,378,066 units for gross proceeds of $2,151,227. Following closing of the private placement, the Sentient group holds approximately 37.45 per cent of the issued and outstanding common shares of Mawson on a partially diluted basis (taking into account the full exercise of warrants issued to the Sentient fund under the private placement only).
The securities issued under the private placement are subject to a four-month hold period expiring on April 3, 2017.
Mawson shares were up 2.4% at C$0.43 on Monday.