AuMEGA Metals Ltd has closed the second tranche of private placement financing to institutional, professional and accredited investors for aggregate gross proceeds of C$7.3 million.
The second tranche will involve the issue of 128,035,776 ordinary shares, including 65,236,111 ‘hard-dollar’ shares at a price of C$0.050/A$0.054 per share with the remainder being flow through shares.
This component comprises 34,299,666 traditional flow through shares at C$0.06/A$0.065 per share and 28.5 million premium flow through shares at a premium flow through price of C$0.06825/A$0.07408 per share.
Follows C$8.77 million first tranche
The tranche two placement was in addition to the previous first tranche closing in which the company issued 131,152,889 ordinary shares for aggregate gross proceeds of C$8.77 million.
Showing their confidence in the company, certain directors and officers participated in the tranche two placement and subscribed for an aggregate of 1,366,666 ordinary shares, making it a related party transaction.
Use of funds
Proceeds from the financing will be used primarily to advance exploration in Newfoundland and Labrador, which is expected to include AuMEGA’s largest drill program in the last three years of up to 20,000 metres.
The aim of this extensive drilling is to grow the existing mineral resource and discovery at the highly prospective Bunker Hill Project.
Additionally, the company will continue to invest in early-stage exploration to further define and advance new and existing targets at Hermitage and Malachite.
Finally, proceeds from the financing will also be used for working capital and general corporate purposes.
Hold period
The hold period for new shares sold in the tranche two placement ends on April 7, 2025, for the shares that are traditional flow-through shares and premium flow-through shares and ends on April 10, 2025, for the hard-dollar shares. Securities issued to non-Canadian investors for trading on ASX will be freely tradeable.
The offering remains subject to the receipt of final approval from the TSXV.