Goldgroup Mining (TSX-V:GORO) has closed a non-brokered private placement raising US$121.85 million ($173.7 million), exceeding its initial US$75 million target by more than 60%.
The company issued 33.38 million units at US$3.65 per unit. Each unit comprises one common share and half a warrant, with each full warrant exercisable at US$5.10 until 25 March 2028.
Net proceeds will be used for working capital and general corporate purposes, including advancing its mining and development portfolio and evaluating strategic investments and merger and acquisition opportunities.
Chairman and CEO Javier Reyes says the financing is an important milestone for Goldgroup.
“Raising approximately US$122 million on a non-brokered basis — more than 60% above our initial target and the largest financing in the company’s history — reflects strong support from new and existing shareholders and gives us greater flexibility to advance our portfolio and evaluate strategic opportunities,” Reyes says.
“We believe it reflects Goldgroup’s growing profile in the mining investment community. The participation of leading institutional and sophisticated mining investors is especially meaningful to us, and we do not take their trust for granted.”
Shares and warrants are subject to a 4-month-and-1-day statutory hold period under Canadian securities laws.
The company received conditional approval from the TSX Venture Exchange to close the offering, with final approval subject to remaining filing requirements.
Goldgroup Mining is a Canada-based mining company with assets in Mexico and the US.
Write to Paula Fabe at Mining.com.au
Main image: Goldgroup Mining
