Great Panther Mining Ltd (Great Panther) has announced that further to its press release dated 1 August 2019, the company has closed its bought deal financing for aggregate gross proceeds of US$17.25 million, pursuant to which the company issued 23 million common shares (Shares) of the company at the price of US$0.75 per share (the Offering).
The Offering was led by Cantor Fitzgerald Canada Corporation (CFCC), as lead underwriter and sole book-running manager, on behalf of itself and a syndicate of underwriters including H.C. Wainwright & Co., LLC as lead manager, and Scotiabank and Eight Capital, acting as co-managers (collectively with CFCC, the Underwriters). The Underwriters fully exercised their over-allotment option to purchase 3 million shares and received a cash commission equal to 5% of the gross proceeds of the Offering.
Participation in the Offering by insiders and company employees totalled approximately US$0.6 million. Jeffrey Mason, Chairman of Great Panther stated: "The completion of the financing provides us with the immediate capital to continue to grow the company as an intermediate gold and silver producer. We thank our existing and new shareholders, employees and board members who participated."
The company intends to use the net proceeds of the Offering for (i) near mine and regional exploration programmes at the Tucano gold mine in operation in Brazil, (ii) capital expenditures in connection with the Tucano gold mine including optimisation initiatives, and (iii) improvement of the company's working capital balances and general corporate purposes.
The company will also repay existing debt in an amount of 10% of the net proceeds of the Offering as a further reduction to the principal owing under the company's amended credit agreement with an unsecured lender. The Offering was completed by way of a prospectus supplement dated 2 August 2019 (the Prospectus Supplement) to the company's existing Canadian short form base shelf prospectus (the Base Shelf Prospectus) and U.S. registration statement on Form F-10, as amended (File No. 333-231830) (the Registration Statement), each dated 2 July 2019. The Registration Statement was declared effective by the United States Securities and Exchange Commission (the SEC) on 5 July 2019. The Canadian Prospectus Supplement (together with the related Canadian Base Shelf Prospectus) is available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com. The U.S. Prospectus Supplement (together with the related U.S. Base Shelf Prospectus) is available on the SEC's website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon by the accuracy or adequacy of the Prospectus Supplement, the Base Shelf Prospectus or the Registration Statement.
Read the article online at: https://www.globalminingreview.com/finance-business/09082019/great-panther-completes-us1725-million-bought-deal-financing/