Mason Graphite Raises Bought Deal Private Placement Offering to $10 Million

Mason Graphite Inc. (TSXV:LLG,OTCQX:MGPHF) announced this morning that it has entered into an agreement under which a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. has agreed to buy, on a bought deal basis, 15,384,625 units priced at $0.65 each for gross proceeds of about $10 million.

Investissement Québec subsidiary Ressources Québec will be subscribing for 4,615,385 of the units (the “Lead Order”) for gross proceeds of $3 million. The offering’s closing depends on Ressources Québec “purchasing, at closing, the securities subscribed for under the Lead Order.”

Originally, the private placement was for 12,307,705 units for a total value of $8 million.

As quoted in the press release:

Each Unit is comprised of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of $0.85 for a period of 24 months following the closing of the Offering.

Mason Graphite has also granted an option to the Underwriters to purchase up to 2,307,694 additional Units at the issue price of $0.65 per Unit (the ‘Underwriters’ Option’), which if exercised in full would result in total gross proceeds of $11,500,007 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 of the Offering.

In connection with the Offering, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds raised under the Offering (inclusive of the Underwriters’ Option) and that number of non-transferable broker warrants equal to 6.0% of the number of Units sold (inclusive of the Underwriters’ Option). Each broker warrant will be exercisable into one Unit of the Company for a period of 24 months from the closing of the Offering at a price of $0.65 per Unit.

Benoit Gascon, president and CEO of Mason, commented:

We are very pleased to welcome Ressources Québec as one of our largest shareholders and we are confident that they will be an important partner as we move our project forward. We believe these investments are a strong endorsement of the quality and viability of the Lac Guéret project.

Click here to read the full Mason Graphite Inc. (TSXV:LLG,OTCQX:MGPHF) press release.