Great Panther Mining Limited (TSX:GPR, NYSE:GPL) said it has entered into an agreement for a public offering to raise aggregate gross proceeds of approximately $20 million.
Under the agreement with HC Wainwright & Co., LLC, acting as sole book-running manager and representative of a syndicate of underwriters, the underwriters have agreed to purchase on a firm commitment basis 76,923,077 common shares in the capital of the company at a public offering price of $0.26 per share, less underwriting discounts and commissions.
The company said it intends to use the net proceeds of the offering for underground mine development and exploration programs at Tucano, and to maintain its working capital and for general corporate purposes.
In addition, Great Panther has granted the underwriters an option, exercisable at any time and from time to time for up to 30 days, to purchase up to an additional 11,538,461 common shares at the public offering price.
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Great Panther will pay to the underwriters a cash commission equal to 6.0% of the gross proceeds of the offering, including any proceeds received from the exercise of the option.
Cormark Securities Inc. and Roth Capital Partners are acting as co-managers for the offering.
The offering is expected to close on or about November 12, 2021, subject to the satisfaction of customary closing conditions, including Toronto Stock Exchange and NYSE American approvals. For the purposes of the TSX approval, the company intends to rely on the exemption set forth in Section 602.1 of the TSX Company Manual, which provides that the TSX will not apply its standards to certain transactions involving eligible interlisted issuers on a recognized exchange, such as NYSE American.
The offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the effective shelf registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC.
Great Panther is a growing gold and silver producer focused on the Americas. It owns a diversified portfolio of assets in Brazil, Mexico and Peru that includes three operating gold and silver mines, an advanced development project and a large land package with district-scale potential.
The company is focused on creating long-term stakeholder value through safe and sustainable production, reinvesting into exploration and pursuing acquisition opportunities to complement its existing portfolio.
Contact the author at jon.hopkins@proactiveinvestors.com