Giant Mining (CSE:BFG) has completed a C$3 million non-brokered private placement, issuing more than 15 million special warrants at $0.20 each, the company announced in a statement on Friday.
Proceeds of the placement will support exploration and general working capital noting the deal is subject to customary conditions, including Canadian Securities Exchange approval.
Special warrants will automatically convert into units, each consisting of one common share and one share purchase warrant, on the earlier of a prospectus supplement filing or four months and one day after closing.
The warrants will allow holders to buy additional shares at C$0.32 for up to four years.
If the stock trades at or above C$0.80 for five consecutive trading days, the company may accelerate the expiry, triggering a 30-day window for warrant holders to exercise.
A 10% blocker provision will restrict warrant exercises that would result in a holder owning 10% or more of the company’s outstanding shares.
As part of the offering, the company paid C$102,080 in finders’ fees and issued 510,400 broker warrants, each exercisable at C$0.32 per share over four years.
The securities are subject to a four-month plus one day statutory hold period under Canadian law.
Write to Dan Petrie at Mining.com.au
Images: Giant Mining
