Dore Copper Mining Corp. announced that it has entered into an agreement with lead agent Cormark Securities Inc, to raise around C$5 million through a private placement of common and flow-through shares in the company.
The company said it plans to issue up to 6,666,800 common shares at a price of 30 cents for gross proceeds of up to around $2,000,040, and up to 8,333,500 common shares that will qualify as flow-through shares at a price of 36 cents each for gross proceeds of up to around $3,000,060.
Net proceeds from the sale of the common shares will be used for exploration and development activities and for working capital and general corporate purposes, it added.
READ: Doré Copper Mining has a hub-and-spoke strategy to advance its high-grade copper gold brownfield projects
Placement agents will have the option, exercisable in whole or in part at any time up to 48 hours prior to the closing of the offering, to arrange for the purchase of up to an additional 1,000,020 offered common shares at the common share offering price and 1,250,025 flow-through shares at a price of 36 cents per flow-through share, Dore Copper said.
Net proceeds from the sale of flow-through shares will be used as follows:
- an amount equal to incur, directly or indirectly, expenses related to the company’s projects in Quebec, on or before December 31, 2023, that are eligible Canadian exploration expenses, of which: (i) at least 50% will qualify, if available under applicable law, as flow-through critical mineral mining, and (ii) the rest will qualify as flow-through mining expenditures; and
- renounce all the qualifying expenditures in favour of the subscribers of the flow-through shares, effective December 31, 2022.
The offer is expected to close on or about October 21, 2022, or such other date as the company and Cormark, on behalf of other agents, may agree, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the acceptance of the TSX Venture Exchange.
Dore Copper aims to be the next copper producer in Quebec with an initial production target of 50-million-plus pounds of copper equivalent annually by implementing a hub and spoke operation model with multiple high-grade copper-gold assets feeding its centralized Copper Rand mill.
The company has consolidated a large land package in the prolific Lac Dore/Chibougamau and Joe Mann mining camps that has historically produced 1.6 billion pounds of copper and 4.4 million ounces of gold. The land package includes 13 former producing mines, deposits and resource target areas within a 60-kilometre radius of its Copper Rand mill.
Contact the author at jon.hopkins@proactiveinvestors.com