Thesis Gold Inc (TSX-V:TAU) has completed its private placement offering that raised total gross proceeds of $24,500,115.
Canadian billionaire Eric Sprott purchased 3.7 million common shares -- and following the closing of the offering, he will hold about 6.65% of the issued and outstanding shares of Thesis.
"With this financing, Thesis is fully funded for its 2022 exploration and drill program where we look to complete up to 50,000 metres,” said Thesis CEO Ewan Webster in a statement. “This program will focus on the expansion potential of the known zones of mineralization in addition to testing new epithermal and porphyry targets across our extensive 100% owned 180 km2 Ranch project."
READ: Thesis Gold says Ridge zone at Ranch project continues to deliver 'strong' results
The offering was for gross proceeds of C$20,000,115 for Premium flow-through common shares (Premium FT Shares) at C$2.70 each for the issuance of up to 7,407,450 Premium FT Shares and gross proceeds of $4.5 million for the regular flow-through common shares (FT Shares) at $2.40 each for the issuance of up to 1,875,000 FT Shares, for combined aggregate gross proceeds of $24,500,115.
Thesis said the gross proceeds from the sale of Premium FT Shares and FT Shares (together, the Flow-Through Shares") will be used to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (Qualifying Expenditures) related to the company's projects in Canada.
All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2022. The net proceeds from the sale of the Flow-Through Shares will be used by the company for exploration of its Ranch Gold Project as Qualifying Expenditures.
The offering was made pursuant to an agency agreement with a syndicate of agents led by Clarus Securities Inc., including Cormark Securities Inc. (Agents)
The company paid the Agents a cash commission representing 6% of the gross proceeds and issued to the Agents non-transferable broker warrants entitling the Agents to acquire that number of non-flow-through common shares equal to 6% of the total number of Flow-Through Shares. Each broker warrant will entitle the holder to acquire one Non-Flow-Through Share at $2.70 each at any time for a period of 24 months from the closing date of the offering.
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