Falco Announces Bought Deal Offering of $25M and Concurrent Private Placement for Up to an Additional $25M

Falco Resources Ltd. (TSXV:FPC) is pleased to announce it has entered into an agreement with Haywood Securities Inc., as lead underwriter on behalf of a syndicate of underwriters (collectively, the “Underwriters”), under which the Underwriters have agreed to purchase, on a bought deal basis, 14,019,000 units (“Units”) of the Company and 7,812,500 flow-through shares (“Flow-Through Shares”) at a price of $1.07 per Unit and $1.28 per Flow-Through Share, for aggregate gross proceeds of $25,000,330 (the “Offering”). The Underwriters have been granted the option (the “Over-Allotment Option”) to purchase up to an additional 2,102,850 Units and 1,171,875 Flow-Through Shares, in any combination of Units and Flow-Through Shares, exercisable in whole or in part, at any time up to 30 days following the closing of the Offering.
Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant shall be exercisable to acquire one additional common share (a “Warrant Share”) of the Company for a period of 18 months from the closing date of the Offering at an exercise price of $1.45 per Warrant Share.
The expiry date of the Warrants may be accelerated by the Company at any time following the six-month anniversary of the closing of the Offering and prior to the expiry date of the Warrants if the volume-weighted average trading price of the Company’s common shares is greater than $1.75 for any 20 consecutive trading days, at which time the Company may accelerate the expiry date by issuing a press release announcing the reduced warrant term whereupon the Warrants will expire on the 20^th calendar day after the date of such press release.
The net proceeds of the Offering will be used by the Company to advance the dewatering program related to the development of the Horne 5 Deposit and for general working capital.
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