Pershing Gold Corp. an emerging Nevada gold producer has entered into an underwriting agreement with a syndicate of underwriters (the Underwriters). Pursuant to this agreement, the Underwriters have agreed to purchase, on a bought deal underwritten basis, 2 430 000 shares of its common stock and warrants to purchase up to 972 000 shares of its common stock, at a price of US$2.80 per share and associated four-tenth common stock warrant, for gross proceeds, before deducting underwriting commissions and estimated offering expenses, of US$6.8 million.
The warrants will have a term of two years from the issue date and an exercise price of US$3.40 per whole share. In addition, the company has granted the Underwriters a 30-day option to purchase up to an additional 364 500 shares of common stock and/or warrants to purchase up to 145 800 shares of common stock. The offering is expected to close on or about 19 December 2017, subject to customary closing conditions.
In addition, concurrently with the public offering of common stock, the company announced a private placement of 2 430 000 shares of its common stock and warrants to purchase 972 000 shares of its common stock to select private investors at the same price as the shares of common stock and warrants sold to the public in the public offering for gross proceeds of US$6.8 million.
The company intends to use the proceeds from the public offering and the private placement to advance its Relief Canyon project, including pre-construction and development and exploration drilling to expand mineralisation at Relief Canyon and/or for general corporate purposes.
The offering is being co-led by Canaccord Genuity Corp. (Canaccord), BMO Nesbitt Burns Inc. (BMO Capital Markets) and Cantor Fitzgerald Canada Corp. (CFCC) acting as joint-bookrunners.
The offering will be made in the United States through Canaccord, BMO Capital Markets and CFCC's U.S. affiliates, Canaccord Genuity Inc., BMO Capital Markets Corp. and Cantor Fitzgerald & Co., pursuant to a preliminary prospectus supplement and the accompanying prospectus under the company's registration statement previously filed on Form S-3 (File No. 333-211910) with the Securities and Exchange Commission (the SEC), and declared effective by the SEC on 29 June 2016, and in Canada pursuant to a prospectus supplement to the company's (final) short form base shelf prospectus dated 14 March 2017, filed with the securities regulators in each of the Provinces of Canada other than Quebec.
Read the article online at: https://www.globalminingreview.com/finance-business/12122017/pershing-gold-signs-us68-million-underwriting-agreement/