Amid a gold correction, this week saw a flurry of financing activity in the mining financings space. Here are three of the most interesting.
1. GoGold Resources Inc. (TSX: GGD)
- Gross Proceeds: $30 million (bought deal)
- Sector: Precious metals
- Units issued: 20 million
- Type: Common shares
- Price: $1.50
- Warrants: None
- Agents: BMO Capital Markets
- Use of Proceeds: Project development
- Press release
GoGold Resources Inc. (TSX: GGD) announced that it had landed a $30 million bought deal with a syndicate of underwriters including Sprott Capital Partners LP, BMO Capital Markets, PI Financial, and Eight Capital on Tuesday.
The company plans to issue 20 million common shares at $1.50 each, which was a 16-cent discount when the deal was announced. This is the second large financing secured by the company this year, the last being its $25 million bought deal from back in February.
GoGold says proceeds will be used for the development of its Los Ricos project in Jalisco, Mexico, which is acquired in August 2019. GoGold recently filed a technical report for Los Ricos South, which estimated the deposit contains 63.7 million silver-equivalent ounces grading 199 grams of silver-equivalent per tonne (g/t AgEq) 19.9 million ounces of silver-equivalent grading 190 g/t AgEq.
The day after the announcement, shares of the company dropped 10 cents, and most recently closed at $1.56 per share, though the stock is up more than a dollar since March.
2. Auryn Resources (TSX: AUG)
- Gross Proceeds: $22.5 million (bought deal)
- Sector: Precious metals
- Units issued: 7.5 million
- Type: Subscription receipts
- Price: $3.00
- Warrants: None
- Agents: Non-brokered
- Use of Proceeds: Acquisition/Spin out
- Press release
Auryn Resources Inc. (TSX: AUG) announced a $22.5 million bought deal on Monday as part of its deal to acquire Eastmain Resources Inc. (TSX: ER) and spin out its own Peruvian projects into the new Fury Gold Mines Ltd.
The company plans to issue 7.5 million subscription receipts at $3.00 each. These subscription receipts will then convert to Auryn shares after the Eastmain acquisition is completed, which will entitle holders to then receive 0.7 shares of Fury Gold as well.
Auryn has planned a 50,000-metre drill program at the Eau Claire project, which it is acquiring from Eastmain in the transaction.
Following the deal and other news, shares of Auryn have risen 4 cents to $2.80 per share. Read our full article about the deal and the company here.
3. Silver Dollar Resources Inc. (CSE: SLV)
- Gross Proceeds: $10.5 million
- Sector: Precious metals
- Units issued: 7.5 million
- Type: Common shares
- Price: $1.40
- Warrants: None
- Agents: Non-brokered
- Use of Proceeds: Ongoing exploration
- Press release
Silver Dollar Resources Inc. (CSE: SLV) arranged a $10.5 million non-brokered private placement on Wednesday, subscribed in part by billionaire Eric Sprott.
The company plans to issue 7.5 million common shares at $1.40 each. 4.6 million of those shares will go to Eric Sprott, increasing his stake in the company to 19.9%. Meanwhile, 500,000 shares will go to First Majestic Silver Corp. (TSX: FR).
Silver Dollar says proceeds will be used for ongoing exploration and development at its projects in Red Lake, Ontario, Canada and Durango, Mexico, as well as for working capital.
Silver Dollar just began trading on the CSE in May. The company has been focused on its La Joya silver project, where it recently intersected a 2-metre interval grading 1,778 g/t AgEq.
The stock has been on the rise since joining the CSE, and is up $1.56 to $1.87 per share.
