Mawson Resources Limited (TSE:MAW) (OTCMKTS:MWSNF) has closed its oversubscribed private placement which raised gross proceeds of C$7,900,280, the company announced Thursday.
The net proceeds will be used for exploration on the company's properties, located primarily in Finland, and for working capital and general corporate purposes, Mawson said in a statement.
The brokered part of the offering was led by Red Cloud Securities on behalf of a syndicate, which included Haywood Securities Inc, Canaccord Genuity Corp and Eight Capital.
READ: Mawson Resources says test results from Rajapalot project show over 90% gold and cobalt liberation
The non-brokered part includes the participation of certain directors and officers of the company for C$132,000, certain existing shareholders of Mawson pursuant to the exercise of pre-existing pre-emptive rights and new shareholders, including affiliates and clients of the Sprott Group.
A total of 49,376,749 units were issued at a price of C$0.16 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at a price of C$0.24 at any time prior to October 30, 2021.
All securities issued in connection with the offering are subject to a statutory four-month hold period expiring on March 2, 2020.
"To attract such significant support at this time of the market cycle speaks to the quality of our Finnish gold-cobalt assets and the Mawson team that is driving discovery and resource expansion through systematic and rigorous exploration business practice,” said CEO Michael Hudson.
He said drilling at the Palokas prospect will commence within the next week and further rigs will be added in late December to complete a 15-kilometre drill program that will see the company drilling to expand resources through to April 2020.
As the offering resulted in a number of common shares being issued and made issuable that was greater than 25% of the outstanding common shares of the company, pursuant to TSX policies, Mawson said it has sought and received shareholder approval by way of written consents of shareholders holding more than 50% of the common shares.
Mawson's flagship property is the Rajapalot project in Finnish Lapland, a few kilometers south of the Arctic circle, where both high-grade gold and cobalt have been discovered over a camp-scale area of more than 10 sq km.
The company's stock recently traded up 7% to C$0.15 a share in Toronto.
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