Benchmark Metals Inc. (TSX-V:BNCH, OTCQX:BNCHF) has announced it has entered into an agreement with PI Financial Corp as sole bookrunner on behalf of a syndicate of agents, in connection with a marketed best efforts private placement of up to C$16 million.
The offering will consist of up to 19.1 million units at a price of C$0.42 per unit and up to 16.7 million flow-through units at a price of $0.48 per FT unit. The units and FT units will be offered by way of a best efforts private placement pursuant to exemptions from the prospectus requirements to residents of all provinces of Canada and such other jurisdictions as may be agreed to by the company and the agents.
Each unit shall consist of one common share and one-half of one transferable common share purchase warrant. Each FT unit shall consist of one flow-through common share and one-half of one transferable warrant to be issued on a non-flow-through basis. Each whole warrant shall be exercisable into one additional common share for two years from closing at an exercise price of C$0.65 per warrant share.
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Benchmark Metals said it has also granted PI Financial an option to increase the size of the offering, which will allow the agents to offer up to an additional 20% of the offering, on the same terms. The agents' option may be exercised in whole or in part at any time prior to the closing of the offering, in any combination of units and FT units.
The company said it has also agreed to pay the agents a cash commission equal to 6% of the gross proceeds from the offering and issue to the agents non-transferable warrants equal to 6% of the aggregate number of offered securities issued under the offering. The compensation warrants will be exercisable into common shares at the unit offering price for a period of twenty-four months from the closing date.
The net proceeds raised from the units will be used to fund ongoing project development expenditures at Benchmark Metals’ Lawyer's Gold-Silver project, and for working capital and general corporate purposes, according to Benchmark Metals.
The offering is expected to close on or about September 29, or such other date as agreed between the company and the agents, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. The units and FT units are subject to a four-month and a day hold period from the closing date.
Benchmark Metals Inc. (TSX-V:BNCH, OTCQX:BNCHF)is a Canadian-based gold and silver company advancing its 100% owned Lawyer's Gold-Silver project located in the prolific Golden Horseshoe of northern British Columbia.
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