Rye Patch Gold Corp. closed its previously announced bought-deal offering, raising about C$20 million including the full exercise of the underwriters' overallotment option.
The company issued 15,384,700 units at C$1.30 apiece, with each unit consisting of 1 common share and 1 share purchase warrant exercisable for 1 common Rye Patch share at C$1.65 until Jan. 31, 2020.
Proceeds are earmarked for debt servicing, the continued ramp-up of Rye Patch's Florida Canyon gold mine in Nevada and general working capital.
When the group flagged the fundraising in January, it also announced a strategic review to "explore alternatives" to enhance shareholder value, such as M&A activity, asset disposals and restructuring or refinancing its credit facility.
