Mawson Resources Ltd. entered an agreement for a brokered private placement to raise up to C$5 million on best efforts, which it will use for exploration primarily in Finland, as well as for working capital and general corporate purposes.
The company said Sept. 24 that the placement will consist of up to 31,250,000 units at 16 Canadian cents apiece. Each unit will consist of 1 common share and one-half of a warrant, exercisable at 24 cents per share for 24 months from closing, which is anticipated around Oct. 25.
Mawson granted lead agent Red Cloud Securities an overallotment option to sell up to an additional 12.5 million units, exercisable in full or in part at any time of to five days prior to the closing of the offering. If exercised in full, the option would increase gross proceeds to C$7 million.
The company noted that the total number of shares issuable under the offering represents 46.1% of its current and issued outstanding share capital on a nondiluted basis.
In January, Mawson announced a 15,000-meter diamond drilling program at its Rajapalot project in Finland, aiming to expand gold-cobalt resources first defined in late 2018 for the Raja deposit.
