Benchmark Metals Inc told investors that it has closed its previously announced bought deal financing, raising gross proceeds of $40,266,720.
The mineral exploration company also announced that Yamana Gold (TSX:YRI) Inc has made a strategic investment by participating in the offering and as a result will own approximately 3.99% of Benchmark on a non-diluted basis.
"Following the offering, we will have more than $50 million available to explore and advance the Lawyers Gold-Silver Project,” CEO John Williamson said in a statement.
“The company is encouraged by the significant participation in the offering from existing shareholders and are pleased to welcome Yamana Gold (TSX:YRI) as a new investor in Benchmark.”
READ: Benchmark Metals increases its previously announced bought-deal offering amount to C$33.6M
Benchmark said the investment by Yamana is an important endorsement of the Lawyers Gold-Silver Project from a major precious metal producer and mine developer that has an established reputation and track record operating and developing world-class mines throughout the Americas in Tier 1 mining jurisdictions.
“We look forward to a positive working relationship with Yamana as we reach near-term milestones including an updated Mineral Resource Estimate and a Preliminary Economic Assessment (PEA),” Williamson added.
The company said the offering was led by PI Financial Corp. and Sprott Capital Partners LP on behalf of a syndicate of underwriters that included Cormark Securities Inc and Clarus Securities Inc.
Under the offer, it issued a total of 12,000,000 units at $1 each, 1,920,000 flow-through units at $1.25 per unit and 18,216,000 charity flow-through units at $1.42 each, including the exercise of the over-allotment option granted to the underwriters.
Each unit consists of one common share and half a transferable common share purchase warrant. Each flow-through unit consists of one flow-through common share half a warrant to be issued on a non-flow-through basis. Each charity flow-through unit consists of one charity flow-through common share and half a warrant to be issued on a non-flow-through basis. Each warrant is exercisable into one additional common share until December 9, 2023, at an exercise price of C$1.55, the company said.
Benchmark said the net proceeds raised from the units will be used to fund ongoing project development expenditures at the Lawyers Gold-Silver Project and for working capital and general corporate purposes.
The gross proceeds from the sale of the flow-through and flow-through charity units will be used before 2022 to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" related to its projects in Canada, it added.
"Yamana's investment in Benchmark Metals recognizes the significant technical strengths of management and equally significant technical merits of its project along with an immediate value proposition, with upcoming milestones that will further enhance that value and future potential,” Yamana Gold (TSX:YRI) executive chairman Peter Marrone commented.
Benchmark Metals is a Canadian mineral exploration company focused on proving and developing the substantial resource potential of the Lawyer’s Gold-Silver Project, located in the prolific Golden Horseshoe of northern British Columbia, Canada. The company is part of the Metals Group of companies, managed by an award-winning team of professionals who stand for technical excellence, painstaking project selection and uncompromising corporate governance, with a proven ability to capitalize on investment opportunities and deliver shareholder returns.
Contact the author at stephen.gunnion@proactiveinvestors.com