C3 Metals Inc. (TSX-V:CCCM) said it has closed a bought deal private placement through the issuance of 101,582,178 common shares in the capital of the company at a price of C$0.19 per share for gross proceeds of C$19,300,614, which includes the partial exercise of the over-allotment option.
The offering was conducted under the terms and conditions of an underwriting agreement entered into between the company and a syndicate of underwriters led by Canaccord Genuity (TSX:CF, LSE:CF) Corp, as lead underwriter, and including Haywood Securities Inc and Beacon Securities Limited.
Gross proceeds of the offering will be used to expand the drill program at the company's 100% owned Jasperoide high-grade copper-gold skarn property in Peru and to undertake a maiden drill program at the company's Bellas Gate property in Jamaica and for general working capital and corporate purposes.
READ: C3 Metals increases its bought deal private placement financing to C$18M
As consideration for the services provided by the underwriters in connection with the offering, the company paid a cash commission equal to 6% of the proceeds of the offering (except, with respect to certain purchasers on a President's List, the commission being equal to 3%); and issued non-transferrable compensation warrants equal to 6% of the number of shares issued under the offering (except, with respect to certain purchasers on the President's List, no compensation warrants being issued). Each compensation warrant entitles the holder to purchase one share at an exercise price of C$0.19 per share until November 9, 2023.
All securities issued in connection with the offering are subject to a statutory hold period of four months and one day from the date of issuance. The offering is subject to the final acceptance of the TSX Venture Exchange.
Tectonic Advisory Partners acted as advisor to C3 Metals (Tectonic Securities transactions are executed through Ecoban Securities Corporation).
Contact the author at jon.hopkins@proactiveinvestors.com