Prime Mining Corp. (TSX-V: PRYM) (OTCQB: PRMNF) (Frankfurt: A2PRDW) is pleased to announce the completion of its previously announced bought deal private placement. A total of 9,746,250 units, including the full exercise of the over-allotment option, were sold at a price of $2.95 per Unit for gross proceeds of approximately $28,751,438. Each Unit consists of one common share in the Company and one half of one common share purchase warrant exercisable at a price of $5.00 until April 27, 2024.
Desjardins Capital Markets acted as sole bookrunner and co-lead underwriter along with TD Securities Inc., on behalf of a syndicate of underwriters including Clarus Securities Inc., BMO Capital Markets, Stifel GMP, and PI Financial Corp., in connection with completion of the Offering. The net proceeds from the Offering will be used by the Prime for exploration and development of the Company’s Los Reyes mineral property and for general corporate purposes.
The Offering included a subscription from an insider of the Company for an aggregate of 770,978 Units. This participation by an insider of the Company constitutes a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. For this transaction, the Company has relied on the exemption from the formal valuation requirements contained in Section 5.5(a) of MI 61-101 and has relied on the exemption from the minority shareholder requirements contained in Section 5.7(1)(a) of MI 61-101.
All securities issued in connection with the Offering, are subject to a statutory hold period in accordance with applicable Canadian securities law until August 28, 2021.
This press release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from such registration. The Company has not registered and will not register the securities under the U.S. Securities Act of 1933, as amended. The Company does not intend to engage in a public offering of its securities in the United States.
About Prime Mining Corp.
Prime Mining Corp., a member of the TSX Venture 50, is an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators who have united to build a low cost, near-term gold producer at the historically productive Los Reyes project in Mexico. Prime has a well-planned capital structure with significant team and insider ownership.
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We acknowledge the [financial] support of the Government of Canada.