Golden Shield Resources (CSE:GSRI) Corp has upsized its previously announced private placing and is set to raise around C$5.5 million to advance exploration in Guyana and for working capital.
Canaccord Genuity (TSX:CF, LSE:CF) Corp will act as agent for the financing, which will see up to 12,790,697 units issued at C$0.43 each.
Each unit of the amended private placement consists of one share and one share purchase warrant, with each warrant entitling the holder to purchase one Golden Shield share at C$0.60 for 24 months following closing.
READ: Golden Shield Resources amends private placement; will now raise up to C$2M
There is also an over-allotment option for the agent to sell up to a further 1,918,604 units at the offer price, exercisable in whole or in part, at any time up to 48 hours prior to closing.
If the over-allotment option is exercised in full, around a further C$825,000 in gross proceeds will be raised and the offer's total gross proceeds will be around C$6.325 million.
The offer is scheduled to close on or around July 5 this year and is subject to certain conditions including the receipt of all necessary approvals.
Vancouver-based Golden Shield is exploring three high-grade gold projects in Guyana: Marudi Mountain, Arakaka, and Fish Creek.
Contact the writer at giles@proactiveinvestors.com