C3 Metals Inc said it has amended its previously-announced bought deal private placement financing agreement to raise gross proceeds of C$18 million, up from C$15 million originally.
The company said the proceeds will be used to expand the drill program at its 100%-owned Jasperoide high-grade copper-gold skarn property in Peru and to undertake a maiden drill program at its Bellas Gate property in Jamaica. The money will also go toward general working capital and corporate purposes.
The syndicate of underwriters, led by Canaccord Genuity (TSX:CF, LSE:CF) Corp, have agreed to purchase 94,736,900 C3 Metals common shares at a price of C$0.19 per share.
READ: C3 Metals reveals more encouraging assays from drilling at Jasperoide copper-gold project in Peru
C3 Metals has also granted the underwriters an option to cover over-allotments, which will allow the underwriters to purchase up to an additional 15,789,500 company shares at the offering price for further gross proceeds of up to C$3 million.
As well, the company has agreed to pay a cash commission of 6.0% of the gross proceeds of the offering and will issue to the underwriters compensation warrants equal to 6.0% of the number of shares sold under the offering, other than in respect of a maximum of C$750,000 in total proceeds of shares issued to certain purchasers under a president's list, in which case only a cash fee of 3.0% will be payable.
The compensation warrants will be exercisable into common shares of the company at a price per compensation warrant equal to the offering price for a period of 24 months from the closing of the offering.
The offering is expected to close on or about November 9, 2021, or such other date as agreed between C3 Metals and the underwriters.
C3 Metals is developing its flagship Jasperoide project, a high-grade copper-gold skarn and porphyry system in Peru. Drilling began in February 2021, returning high-grade copper-gold mineralization over significant thicknesses. The ongoing program has been expanded to test multiple geophysical targets.
Contact Sean at sean@proactiveinvestors.com