NorthWest Copper (TSX-V:NWST) has announced a C$20 million bought deal private placement financing to further explore its properties in British Columbia, Canada.
The company said a syndicate of underwriters led by National Bank Financial have agreed to buy 16.95 million charity flow-through shares (CharityFT Shares) on a bought deal basis.
The Charity FT Shares will be sold at C$1.18 each for total gross proceeds of C$20,001,000, NorthWest Copper (TSX-V:NWST) added in a statement.
The proceeds will be used before December 31, 2022 to explore the company's properties in British Columbia, which will constitute 'Canadian exploration expenses' and will qualify as 'flow-through mining expenditures' within the meaning of the Tax Act.
NorthWest Copper (TSX-V:NWST) also said it had granted the underwriters an option to cover over-allotments, which will allow the underwriters to offer up to a further 15% of the offered Charity FT Shares, on the same terms.
READ: NorthWest Copper finds new copper-gold porphyry at East Niv, BC with first drill campaign there
The underwriters’ option may be exercised in whole or in part at any time up to 48 hours before closing.
On November 8, the company told investors that it had made a new copper-gold porphyry discovery at its East Niv property in British Columbia with the first drill campaign carried out there.
Ten holes have been sunk at East Niv this year and assay results have been received for the first four, with six pending.
Highlight results from the four holes are an intercept of 81.60 meters (m) at 0.56% copper equivalent (CuEq) in one hole starting from just 3m depth, which included 14.80m at 1.02% CuEq starting at 15.20m. Another hole hit 72.30m of 0.25% CuEq starting at 7.65m depth, including 16.05m at 0.32% CuEq starting at 50.8m depth.
Contact the author at giles@proactiveinevstors.com