Filo Mining Corp. said Feb. 5 that it signed an agreement for a bought-deal financing of C$15 million with a syndicate of underwriters led by Haywood Securities Inc.
The underwriters agreed to purchase 5,770,000 Filo shares at C$2.60 apiece. The company also granted the underwriters an overallotment option to buy up to an additional 15% of the total offering, exercisable for up to 30 days following closing.
Additionally, Filo intends to complete a concurrent nonbrokered private placement with certain investors on the same terms as the bought-deal financing to raise C$10 million.
Zebra Holdings and Investments Sarl and Lorito Holdings Sarl, who currently hold stakes in Filo of 18.91% and 9.15%, respectively, indicated their intent to participate in the private placement.
The net proceeds from the financing are earmarked for the exploration and development of the company's Filo del Sol gold-copper project on the border between Chile and Argentina, and for working capital and general corporate purposes.
The two financings are expected to close by Feb. 28.
