Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL) said it has secured US$14 million in bought-deal financing to fund near-mine and regional exploration programs at its Tucano Gold Mine.
The Vancouver-based gold and silver explorer offered 35 million common shares at a price of US$0.40 per share with Cantor Fitzgerald Canada Corporation and BMO Nesbitt Burns Inc as co-lead underwriters.
Great Panther has also granted the underwriters an over-allotment option to purchase up to an additional 5.25 million shares for 30 days after the deal closes, which would provide an extra US$2.1 million in financing. The deal is expected to close on May 20, the company said.
The group will pay the underwriters a 6% cash commission, which includes any proceeds received from the over-allotment option.
In addition to funding work at Tucano, the proceeds are expected to be used to improve Great Panther’s working capital balance and for general corporate purposes.
Great Panther added Tucano to its portfolio in March 2019 as part of its US$105 million acquisition of Beadell Resources. In addition to Tucano, Great Panther operates the Topia mine and the Guanajuanto Mine Complex in Mexico.
—Updated to include new information from Great Panther increasing the offering size—
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