The Conversation (0)
Klondex Mines Ltd. (TSX:KDX) has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and also including RBC Dominion Securities Inc., M Partners Inc., Industrial Alliance Securities Inc., Dundee Securities Ltd. and Mackie Research Capital Corporation. The syndicate of underwriters has agreed to purchase, on a bought deal basis, 7,000,000 common shares (the “Shares”) of the Company at a price of C$2.00 per Share, for aggregate gross proceeds of C$14 million (the “Offering”). The Underwriters will also have the option, exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional 1,050,000 Shares to cover the Underwriters’ over-allotment position. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$16,100,000.
As quoted in the press release:
The net proceeds of the Offering are expected to be used for the accelerated exploration and development at the Midas Gold project and Fire Creek gold project and for working capital and general corporate purposes. The Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
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