O3 Mining Inc. (CVE:OIII) said it has upsized the agreement announced on Thursday under which Sprott Capital Partners LP and Canaccord Genuity Corp., as co-lead underwriters, on behalf of a syndicate of underwriters have agreed to purchase flow-through (FT) shares on a "bought deal" private placement basis by an additional C$10.4 million, for a total offering of approximately C$30.4 million
The syndicate will now acquire 6,703,739 FT shares at an unchanged price of C$4.54 each for aggregate gross proceeds of approximately $30.4 million. The company has also granted the underwriters an option to sell up to an additional 1,005,561 FT shares at a price of C$4.54 each, which may be exercised up to 48 hours prior to the closing of the offering.
If the underwriters' option is exercised in full, the gross proceeds from the offering would be approximately C$35 million.
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As announced previously, the syndicate was going to buy 4,405,287 FT common shares at a price of C$4.54 each for gross proceeds of C$20 million and had been granted an underwriters an option to sell up to an additional 660,793 FT shares.
The gross proceeds from the sale of the FT shares will be used by the corporation to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" related to the corporation's projects in Québec.
The qualifying expenditures will be renounced in favour of the subscribers of the FT shares with an effective date no later than December 31, 2021, and in the aggregate amount not less than the total amount of the gross proceeds raised from the offering.
The offering is scheduled to close on or about February 17, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the conditional approval of the TSX Venture Exchange.
O3 Mining, which forms part of the Osisko Group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada - focused on projects in Québec – with a goal of becoming a multi-million ounce, high-growth company.
The company is well-capitalized and holds a 100% interest in properties in Québec (133,557 hectares). The corporation controls 66,064 hectares in Val-d'Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Fault. O3 Mining also has a portfolio of assets in the Chibougamau region of Québec.
Contact the author at jon.hopkins@proactiveinvestors.com