Mason Graphite Announces $25 Million Bought Deal Private Placement Offering

Mason Graphite (TSX.V:LLG) announced an agreement with National Bank Financial and its underwriters to buy 22,750,000 common shares at a price of $1.10 per share.  for gross proceeds of $25,025,000. The shares will be on a bought deal basis offered by private placement in Canada, and will be available to accredited investors under applicable exemptions from prospectus requirements.
According to the press release:

Mason Graphite has granted an option to the Underwriters to purchase up to 3,412,500 additional Shares at the issue price of $1.10 per share (the “Underwriters’ Option”), which if exercised in full would result in total gross proceeds of $28,778,750 to Mason Graphite from the Offering. The Underwriters’ Option is exercisable in whole or in part at any time up to 48 hours prior to closing.
Approximately $17 million for development expenses related to the Company’s Lac Guéret graphite mine and Baie-Comeau, Québec concentrator plant project (the “Project”), the majority of which the Company expects to incur over the next twelve months (or approximately $21 million if the over-allotment option is exercised in full). These development expenses represent a portion of the Project’s estimated $165.9 million capital expenditure budget, as described in the “NI 43-101 Technical Report: Resource Update and Feasibility Study, Lac Guéret Graphite Project” report published by the Company on February 29, 2016;
The Offering is expected to close on or about September 27, 2016 and is subject to the prior approval of the TSX Venture Exchange. All securities issued at the closing of the Offering will be subject to a four month hold period under applicable Canadian securities legislation and the policies of the TSX Venture Exchange.

Click here to read the full press release.