Benchmark Metals Inc reported that it has upsized its previously announced private placing to C$17.3 million from C$16 million previously.
As reported on August 31 this year, the net proceeds from the offering will be used to fund ongoing work at its flagship Lawyer's gold-silver project in British Columbia, as working capital and for general corporate purposes.
PI Financial Corp will act as sole bookrunner on behalf of a syndicate of agents, and under the new terms, the placing will now consist of up to 22.1 million units at C$0.42 each and up to 16.7 million flow-through units (FT units) at a price of C$0.48 each.
Each unit consists of one common share and one-half of one transferable common share purchase warrant. Each FT unit comprises one flow-through common share and one-half of one transferable warrant to be issued on a non-flow-through basis. Each whole warrant is exercisable into one further share for two years from closing at an exercise price of C$0.65 per warrant share.
READ: Benchmark Metals announces $16M brokered private placement financing
Benchmark said it has also granted the agents an option to increase the size of the offering, allowing them to offer up to an additional 20% of the offering on the same terms.
If the agents' option is exercised in full, then the total gross proceeds will be C$20.7 million.
The offering is expected to close on or around September 29 this year and is subject to certain conditions including the receipt of all necessary regulatory approvals.
The units and FT units are subject to a four-month and a day hold period from closing, added the company.
Canada-based Benchmark wholly owns the Lawyer's project which sits in the prolific Golden Horseshoe of northern British Columbia.
In August this year, it released the details of a preliminary economic assessment (PEA), which showed a robust open-pit mining operation with attractive economics at base case gold and silver prices of US$1,735 per ounce and US$21.75 per ounce, respectively.
The project shows a pre-tax net present value (NPV) of 5% of C$921 million, an internal rate of return (IRR) of 30.5% and a 2.1-year payback, with a pre-tax net operating income of C$2.14 million.
The report forecasted a long mine life with exceptional expansion opportunity, with a total resource production of 46.3 tonnes over a 12-year mine life.
Contact the writer at giles@proactiveinvestors.com