Golden QueenMining Co. Ltd. said July 18 that it signed a formal underwritingagreement, replacing the existing binding agreement with a syndicate ofinvestment dealers led by Cormark Securities Inc., to increase the size of itspreviously announcedfinancing to C$14 million from C$13 million.
Pursuant to the agreement, the underwriters agreed to purchase,on a bought-deal basis, 9,670,000 Golden Queen units at C$1.45 apiece.
Each unit comprises 1 common share and 0.5 of a sharepurchase warrant, with a whole warrant exercisable for 1 common Golden Queenshare at C$2.00 for a 36-month period after closing.
The miner also granted the underwriters the option topurchase an additional 1,450,000 units at the same offering price.
If the option is fully exercised, the company will raiseaggregate gross proceeds of C$16.1 million.
Golden Queen plans to use the proceeds as partial repaymentfor loans due in December and for general corporate purposes.
The financing is expected to close by July 25, subject toapprovals.