Blackrock Gold Corp. (CVE:BRC) said it has upsized its agreement with Red Cloud Securities Inc., as lead underwriter and sole bookrunner, for a "bought deal" placement to raise gross proceeds of to C$9,000,000, an increase from an initial C$7,020,000 due to significant demand.
Under the revised offering, the syndicate of underwriters led by Red Cloud have agreed to purchase for resale 12,500,000 units of the company at a price of C$0.72 per unit. Previously they had agreed to purchase for resale 9,750,000 units of the company also at a price of C$0.72 per unit.
Each unit will be comprised of one common share in the capital of the company and one half of one common share purchase warrant. Each whole warrant shall be exercisable into one common share at a price of C$1.10 at any time on or before the date which is 36 months after the closing date of the offering.
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Under the revised agreement, the company has also granted the underwriters an option to cover over-allotments and for market stabilization purposes to purchase up to 1,875,000 additional units at the offering price to raise additional gross proceeds of up to C$1,350,000. Previously the over-allotment option was for up to 1,462,500 additional units at the offering price to raise additional gross proceeds of up to C$1,053,000.
The over-allotment option will be exercisable in whole or in part, at any time for a period of 30 days from and including the closing date of the offering. In the event that the over-allotment option is exercised in full, the aggregate gross proceeds of the revised offering will be C$10,350,000.
The units will be offered and sold by way of a short form prospectus to be filed in all of the provinces of Canada, with the exception of Quebec, and will be offered and sold elsewhere outside of Canada on a private placement basis.
The net proceeds raised from the offering will be used to fund the exploration of the company's Tonopah West and Silver Cloud properties in Nevada and for working capital and general corporate purposes.
The offering is scheduled to close on or about February 19, 2021, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.
Blackrock is a junior gold-focused exploration company that is on a quest to make an economic discovery. Anchored by a seasoned board, the company is focused on its Nevada portfolio consisting of low-sulfidation epithermal gold & silver projects located along on the established Northern Nevada Rift in north-central Nevada, and the Walker Lane trend in western Nevada.
-- Updates with upsizing details --
Contact the author at jon.hopkins@proactiveinvestors.com