Minaurum Gold Inc. (TSX-V: MGG) (OTCQX: MMRGF) is pleased to announce that it has closed its previously announced bought deal public offering for gross proceeds of C$9,200,000, which includes the full exercise of the over-allotment option. Due to significant demand, the Offering was upsized from the original gross proceeds of C$7.0 million. Under the Offering, the Company sold 23,000,000 units of the Company at a price of C$0.40 per Unit. Red Cloud Securities Inc. acted as sole underwriter and bookrunner for the Offering.
Each Unit is comprised of one common share of the Company and one half of one common share purchase warrant. Each Warrant is exercisable to acquire one Share at a price of C$0.60 at any time on or before July 9, 2023.
The Units were offered by way of a short form prospectus filed in the Provinces of British Columbia, Alberta and Ontario. The net proceeds raised from the Offering will be used for the exploration of the Company’s mineral projects in Mexico and general working capital purposes, as further disclosed in the Company’s short form prospectus.
In connection with the Offering, the Company paid the Underwriter a cash commission of C$534,000 and issued to the Underwriter 1,335,000 warrants of the Company. Each Compensation Warrant is exercisable to acquire one common share of the Company at a price of C$0.40 at any time on or before July 9, 2023.
The Offering included an investment from Crescat Capital. “Minaurum’s value is strongly underpinned by its high-grade Alamos silver project,” commented Quinton Hennigh, technical advisor to Crescat Capital. “We see further unlocked value in some of the Company’s less advanced exploration projects, in particular Santa Marta, a potentially very large volcanogenic massive sulfide project. The Crescat Capital team sees the footprint of the system at Santa Marta as being comparable to that of the Hod Maden deposit in Turkey. We eagerly await Minaurum’s continued exploration success.”
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act, as amended or any securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable securities laws of any state of the United States, or pursuant to an exemption from such registration requirements.
The statements made by Crescat Capital in this release have not been verified by Minaurum. There can be no assurance that exploration activities undertaken by Minaurum at any of its properties, including Santa Marta, will yield results similar to any other mineral property.
Minaurum Gold Inc. is a Mexico-focused explorer concentrating on the high-grade Alamos silver project in southern Sonora. With a property portfolio encompassing multiple additional district-scale projects, Minaurum is managed by strong technical and finance teams in Mexico. Minaurum’s goal is to continue its founders’ legacy of creating shareholder value by making district-scale mineral discoveries and executing accretive mining transactions.
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We acknowledge the [financial] support of the Government of Canada.