Benchmark Metals Inc said it has closed the first tranche of its previously-announced brokered private placement financing, raising gross proceeds of C$18.6 million.
The Canada-based gold and silver company noted that net proceeds from offering will be used to fund ongoing project development expenditures at its Lawyers gold-silver project, and for working capital and general corporate purposes, while funds from the sale of the flow-through (FT) units will be used before 2024 to incur eligible "Canadian exploration expenses" as defined in the Income Tax Act (Canada).
It added that the offering was led by PI Financial Corp, on behalf of a syndicate of agents that included 3L Capital Inc, Clarus Securities Inc, Cormark Securities Inc, Raymond James (NYSE:RJF) Ltd, and Sprott Capital Partners LP.
In the first tranche, Benchmark issued a total of 26,520,000 company units, at a price of $0.42 per unit, along with 15,592,700 FT units, at $0.48 per FT unit, which includes 4,420,000 units issued in connection with the partial exercise of the agents' option to increase the size of the offering up to an additional 20% of the offering.
READ: Benchmark Metals increases previously announced placing to C$17.3 million to advance Lawyer's project
The remaining portion of the agents' option may be exercised in whole, or in part, at any time before the second closing of the offering, which is expected to occur on or about October 14, 2022, according to the company.
Each unit of the private placement consists of one company common share plus one-half of one transferable common share purchase warrant, while each FT unit consists of one common share issued as a "flow-through share" as defined in the Income Tax Act (Canada) and one-half of one warrant to be issued on a non-flow through basis.
Each warrant is exercisable to acquire one additional common share until September 29, 2024, at an exercise price of C$0.65, and all units issued in the offering are subject to a four month and a day hold period that will expire on January 30, 2023, Benchmark said.
The company also noted that in connection with the closing of the offering’s first tranche, the agents received compensation of 6% of the total gross proceeds of the offering, and were issued 2,526,762 compensation options, each of which are exercisable to acquire one company common share until September 29, 2024, at an exercise price of C$0.42 per share.
Benchmark Metals is a Canada-based gold and silver company advancing its 100% owned Lawyer's gold-silver project located in the prolific Golden Horseshoe region of northern British Columbia.
Contact Sean at sean@proactiveinvestors.com