Thor Explorations Ltd (CVE:THX) announced Friday a financing plan to raise up to about US$10 million to fund operations in Africa.
The Vancouver-based company said that, in cooperation with certain shareholders, it will also place up to about US$5 million of previously issued stock via the best efforts brokered private placement.
The offering will consist of up to 40 million units with each unit comprising of up to 2 common shares priced at C$0.18 each for up to 80 million shares, and up to 1 previously issued common share for up to 40 million shares priced at C$0.16 each as part of a secondary sale.
READ: Thor Explorations hits key milestone as it becomes fully funded to construct Segilola gold mine
Thor said the private placement is expected to close on July 2, 2020, and is subject to regulatory approval. All the securities will have a hold period of four months and one day.
With the development of the Segilola gold project in Nigeria already fully funded and in construction and production scheduled for the second quarter of 2021, Thor said it intends to use the net proceeds to fund exploration drilling of the Segilola underground resource and identified satellite targets in proximity to the Segilola project.
The company said it will also use the money to advance exploration at its prospective Douta Gold Project in Senegal, as well as for general working capital purposes.
The private placement will be co-led by H & P (Advisory) Limited and Paradigm Capital Inc.
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham