First Cobalt Corp. said Dec. 8 that it entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. for a bought-deal private placement to raise gross proceeds of C$25.1 million.
The company is offering an aggregate 4.7 million flow-through units at C$1.51 each to raise gross proceeds of C$7.1 million as well as 16.4 million units at C$1.10 each to raise gross proceeds of C$18.0 million.
Each unit consists of 1 common share and half of a share purchase warrant, with each full warrant exercisable at C$1.50 per share for 24 months.
First Cobalt granted the underwriters an overallotment option for up to an additional 4,550,000 units on the same terms, exercisable at any time up to 48 hours prior to closing.
The company will use the proceeds for exploration and development in Ontario, growth opportunities, working capital and general corporate purposes.
First Cobalt recently bought four contiguous mining claims in Ontario near the past-producing Caswell mine for 224,000 shares after completing a three-way merger earlier in the month to secure control over cobalt-prospective land in Ontario.