Regulus Resources Inc. said Dec. 16 that it intends to raise C$10 million through a bought deal offering and a nonbrokered private placement, to fund exploration and development activities at the AntaKori copper-gold project in Peru, and for working capital and general corporate purposes.
The company entered into an agreement with BMO Capital Markets, which is the sole underwriter, to buy 6,368,625 Regulus units on a bought deal basis, at C$1.06 apiece, for gross proceeds of C$6.8 million.
Each unit consists of 1 common share and 0.5 common share purchase warrant. Each full warrant entitles its holder to purchase 1 common share of the company at C$1.70 apiece for 24 months following the closing date.
The company granted the underwriters an option, exercisable at the offering price for 30 days after the closing of the offering, to buy up to an additional 15% of the offering for overallotments, if any. The offering is set to close on or about Dec. 27.
Concurrent with the public offering, Regulus entered into a deal with Route One Investment Co. LP, the company's largest shareholder, on a nonbrokered private placement basis for gross proceeds of about C$3.2 million.