Source: Gold Mountain Mining Corp.
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  • Gold Mountain Mining Corp. (GMTN) has entered into an agreement with Eight Capital for the purchase of 9,600,000 units of the company on a bought-deal basis
  • Each unit will be offered at a price of $1.25 per unit for aggregate gross proceeds of $12,000,000
  • Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant
  • Each warrant is exercisable into one common share of the company at an exercise price of $1.75 for a period of 24 months from the closing of the offering
  • The net proceeds of the offering will be used for the development of the Elk Gold Project, and for working capital and general corporate purposes
  • Gold Mountain Mining Corp. (GMTN) ended yesterday’s trading at $1.43 with a gain of $0.03 or 2.143 per cent

Gold Mountain Mining Corp. (GMTN) has announced a bought-deal public offering for gross proceeds of $12,000,000.

The company will issue 9,600,000 units on a bought-deal basis. Each unit will be offered at a price of $1.25 per unit

Eight Capital is the lead underwriter and sole bookrunner on behalf of a syndicate of underwriters.

Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant.

Each Warrant is exercisable into one common share of the company at an exercise price of $1.75 for a period of 24 months from the closing of the offering.

In addition, Gold Mountain has granted the underwriters an option, exercisable at any time, in whole or in ‎part, for a period of 30 days following the closing of the offering.

This over-allotment option empowers the underwriters to purchase up to an additional ‎1,440,000 units at the issue price to cover over-allotments, if any, and for market ‎stabilization purposes.

In the event the over-allotment option is exercised in full, the aggregate gross ‎proceeds of the offering will be $13,800,000. ‎

The net proceeds of the offering will be used for the development of the Elk Gold Project, and for working capital and general corporate purposes.

The offering is scheduled to close on or about April 21, 2022, and is subject to the listing of the shares on the Toronto Stock Exchange and any required approvals.

Gold Mountain is a British Columbia-based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project.

Gold Mountain Mining Corp. (GMTN) ended yesterday’s trading at $1.43 with a gain of $0.03 or 2.143 per cent.

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