Canada Silver Cobalt Works Inc announced that it has closed its upsized brokered private placement of approximately $6.04 million, including partial exercise of an agent’s option to increase the size of the offering.
The exploration company issued 7,468,000 units at a price of $0.25 per unit, 8,682,500 flow-through units at a price of $0.27 per unit, and 6,310,000 Quebec flow-through units at a price of $0.29.
The offering was led by Research Capital Corporation as sole bookrunner, together with Canaccord Genuity (TSX:CF, LSE:CF) Corp as co-lead agents.
READ: Canada Silver Cobalt announces upsized $5.5M private placement
Each unit consists of one share and one warrant. Each flow-through unit consists of one flow-through share that will qualify as a flow-through share within the meaning of the Income Tax Act (Canada) and one warrant.
Each Quebec flow-through unit consists of one Quebec flow-through share that will qualify as a flow-through share within the meaning of the Tax Act and the Taxation Act (Quebec) and one warrant. Each warrant entitles its holder to purchase one additional share at an exercise price of $0.32 per share at any time up to 36 months following the closing of the offering.
Canada Silver Cobalt said it will use the net proceeds from the offering for continued exploration activities on its Castle property and Graal property.
Additional proceeds will be used for working capital and general corporate purposes, the firm added.
The company paid the agents a cash commission of $422,882, representing 7% of the gross proceeds from the offering, and issued compensation warrants to the agents entitling them to purchase up to 1,572,235 units at an exercise price of $0.25 for a period of three years from closing of the offering.
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