The second week of September was a busy one for large, high-profile bought deals in a number of industries. Here, we break down deals from a massive silver player, a greenhouse produce company adding CBD to its portfolio, and a development-stage gold miner looking to advance a promising historical project in Idaho.
1. First Majestic Silver Corp. (TSX: FR)
- Gross Proceeds: $78 million (bought deal)
- Sector: Precious metals
- Units issued: 5 million
- Type: Common shares
- Price: $15.60
- Warrants: None
- Agents: Cormark Securities Inc.
- Use of Proceeds: Project development
- Press release
Silver producers First Majestic Silver Corp. (TSX: FR) announced a $78 million bought deal on Thursday, subscribed entirely by billionaire mining investor Eric Sprott.
The company issued five million common shares through underwriter Cormark Securities Inc. to 2176423 Ontario Ltd., a corporation controlled by Mr. Sprott. Following the investment, he will hold 2.3% of First Majestic's issued and outstanding shares.
"We believe there has been a lack of appreciation for First Majestic’s equity in 2020 and we are happy to align ourselves with Keith [Neumeyer, president and CEO] who recognizes the mispricing of silver in the marketplace and has been a stalwart for silver," Mr. Sprott said in the release.
Shares of First Majestic had been on the rise since the COVID-19 crash until the release of its most recent earnings report, in which it reported a loss of US$10 million in Q2.
Since announcing the deal with Mr. Sprott, First Majestic shares have dropped 20 cents.
2. Village Farms International Inc. (TSX: VFF)
- Gross Proceeds: US$49.8 million
- Sector: Greenhouse vegetables
- Units issued: 9.40 million
- Type: Special units
- Price: US$5.30
- Warrants: Half; $5.80; Four years
- Agents: Alliance Global Partners
- Use of Proceeds: Acquisitions
- Press release
Greenhouse vegetable growers Village Farms International Inc. (TSX: VFF) announced a US$49.8 million direct offering on Tuesday, and closed the offering on Thursday.
The company issued 9.40 million special units at US$5.30 each through placement agent Alliance Global Partners. Each unit includes a common share and a half warrant, with full warrants exercisable at $5.80 anytime between March 10, 2021, and Sep. 10, 2025.
Village Farms says it plans to use US$40 million of the offering in the acquisition of Pure Sunfarms Corp., a BC-based CBD oil producer. The remaining funds will be used for working capital.
Shares of the company were on a fairly steep decline until the company received an "buy" endorsement from Power Growth and a Health Canada approval for the joint venture with Pure Sunfarms back in May.
Since announcing the deal, Village Farms shares have jumped 56 cents to $7.40 per share.
3. Integra Resources Corp. (TSX-V: ITR)
- Gross Proceeds: US$20 million (bought deal)
- Sector: Precious metals
- Units issued: 5.9 million
- Type: Common shares
- Price: US$3.40
- Warrants: None
- Agents: Raymond James Ltd.
- Use of Proceeds: Pre-feasibility study
- Press release
Development-stage gold-silver miners Integra Resources (TSX-V: ITR) announced a US$20 million bought deal on Wednesday.
The company plans to issue 5.9 million common shares at US$3.40 each through lead underwriter Raymond James Ltd. It has also granted the underwriters an over-allotment option to purchase up to an additional 885,000 common shares at the same price for 30 days after the deal closes.
Coeur Mining Inc. (NYSE: CDE) has agreed to purchase a portion of the offering to maintain its 4.8% interest in Integra.
Integra says that the proceeds from the offering will be used to fund ongoing exploration and pre-feasibility expenditures at its DeLamar project in Idaho.
In the most recent drill results from DeLamar, the company hit a number of solid intercepts including 1.52 metres of 72.37 grams of gold per tonne (g/t Au).
Since announcing the bought deal, shares of Integra have dropped 34 cents.
