GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GRSLF) (FRA:GPE) has upsized the "bought deal" financing it announced earlier on Wednesday, which will now see it raise gross proceeds of around C$10M for working capital and general corporate purposes, up from C$8 million previously.
Under the amended terms of the offering, Beacon Securities Limited, as lead underwriter and sole bookrunner on behalf of a syndicate, has agreed to purchase, on a private placement basis, 17,000,000 units of the company at a price of $0.59 per unit for aggregate gross proceeds of $10,030,000.
Previously Beacon Securities was going to purchase 13.6 million units at C$0.59 each for C$8,024,000.
READ: GR Silver Mining expands high-grade silver-gold bulk tonnage zones at Plomosas mine area ahead of resource estimate
Each unit in the offering comprises one company share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one company share for two years from closing at C$0.74 per share.
GR Silver has also granted the underwriters an option to purchase up to a further 2,550,000 Units, for additional gross proceeds of up to $1,504,500, exercisable in whole or in part at any time up to 48 hours prior to the closing date of the offering. Previously the over-allotment option was for 2.040 million units for additional gross proceeds of up to C$1,203,600.
The offering is expected to close on or around April 27, 2021, subject to certain conditions, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The company holds key assets on the eastern edge of the Rosario mining district in Sinaloa state, Mexico, including the Plomosas silver project, an 8,515-hectare property, strategically located within 5 kilometers of the company's San Marcial silver project.
Contact the author at giles@proactiveinvestors.com