O3 Mining Inc. (CVE:OIII) has announced the completion of its previously announced 'bought deal' brokered private placement of an aggregate of 7,709,300 'flow-through' (FT) shares at an issue price of C$4.54 each for aggregate gross proceeds of approximately C$35 million, including the exercise in full of the underwriters' option.
The gross proceeds from the sale placement will be used by the corporation to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) 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 issuance of the FT shares.
READ: O3 Mining hails drill assays from the Simkar sector at its Alpha property in Québec
The offering was led by Sprott Capital Partners, on behalf of itself and a syndicate of underwriters that included Canaccord Genuity, Eight Capital, CIBC World Markets, National Bank Financial, Red Cloud Securities, Cormark Securities and Stifel Nicolaus Canada.
All securities issued under the offering will be subject to a hold period expiring four months and one day from the date of issuance. The offering is subject to final acceptance of the TSX Venture Exchange.
O3 Mining, an Osisko Group company, is a gold explorer and mine developer ready to produce from its highly prospective gold camps in Québec, Canada. The company benefits from the support, previous mine-building success, and expertise of the Osisko team as it grows towards being a gold producer with several multi-million-ounce deposits in Québec. It is well-capitalized and owns a 100% interest in all its properties (137,000 hectares) in Québec.
In a separate statement earlier on Thursday, O3 Mining reported drill results from an area at its Alpha property in Val-d'Or, Québec, which it said underscores the potential for finding another orebody with good grades.
The latest assays hailed from six holes drilled late last year in the Simkar sector, which spans 5 kilometres (km) by 2 km and includes intersections of 8 grams per ton (g/t) gold over 0.5 metres (m) and 2 g/t of the yellow metal over 5.1m in one hole.
Contact the author at jon.hopkins@proactiveinvestors.com