The Prospector News

Ely Gold Royalties Announces Closing of CDN$17,250,000 Brokered Private Placement

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Ely Gold Royalties Announces Closing of CDN$17,250,000 Brokered Private Placement

 

 

 

 

 

Ely Gold Royalties Inc. (TSX-V: ELY) (OTCQX: ELYGF) is pleased to announce that it has closed its previously announced brokered private placement offering of 21,562,500 units of the Company at a price of $0.80 per Unit for gross proceeds of C$17,250,000, including the full amount of the agents’ over-allotment option.  The Offering was placed through a syndicate of agents co-lead by Clarus Securities Inc. and Mackie Research Capital Corporation as joint bookrunners and including PowerOne Capital Markets Limited.

 

Each Unit was comprised of one common share of the Company and one-half of one Common Share purchase warrant. Each Warrant entitles the holder to acquire one additional Common Share at an exercise price of $1.00 per share for a period of three years from closing. The Company paid the Agents cash commissions and also issued compensation options to the Agents entitling them to purchase an aggregate of 731,250 Common Shares at an exercise price of $0.80 for a period of three years from closing. 

 

At the Company’s option, the original expiry date of the Warrants may be accelerated if the volume weighted average price of the Common Shares is greater than or equal to C$1.60 for a period of five consecutive trading days on the TSX Venture Exchange or other Canadian stock exchange on which the Common Shares are then principally traded. If the Company elects to accelerate the expiry date of the Warrants, holders of the Warrants will have 30 calendar days to exercise their Warrants after receiving notice via press release from the Company.

 

Company insiders purchased 9,737,000 of the Units place in the Offering, such participation constituting a related party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company relied on section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement, and section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement, under MI 61-101 as the fair market value of the related party component of the transaction does not exceed 25% of the Company’s market capitalization.

 

All securities issued and issuable in the Offering will be subject to a four (4) month hold period from the closing date of the Offering.

 

The Company intends to use the net proceeds raised from the Offering principally for further exploration purposes, future royalty acquisitions and related project generative activities, and secondarily for general working capital purposes.

 

Posted May 21, 2020

Share this news article

MORE or "UNCATEGORIZED"


Alamos Gold Announces Friendly Acquisition of Argonaut Gold

Unlocking Value Through the Creation of One of Canada’s Lar... READ MORE

March 27, 2024

Foremost Lithium Reports Widest Intercept to Date; 32.53 Metres of Spodumene-Bearing Pegmatite at its Zoro Lithium Project in Manitoba, Canada

Highlights Include: Drill hole FL 24-009 intersected 32.53 metres... READ MORE

March 27, 2024

WESTERN COPPER AND GOLD ANNOUNCES METALLURGICAL PROGRAM AND ASSOCIATED DRILL RESULTS

Western Copper and Gold Corporation (TSX: WRN) (NYSE American: WR... READ MORE

March 27, 2024

Endeavour Reports Strong FY-2023 Results

ENDEAVOUR REPORTS STRONG FY-2023 RESULTS Production of 1.1Moz at AISC of... READ MORE

March 27, 2024

Orezone Reports 2023 Year-end and Q4 Results, and Provides 2024 Guidance

Orezone Gold Corporation (TSX: ORE) (OTCQX: ORZCF) reported its o... READ MORE

March 27, 2024

Copyright 2024 The Prospector News