Goldgroup Mining (TSX-V:GORO) has increased the maximum size of its non-brokered private placement to US$125 million ($175.56 million), from US$75 million, citing investor demand.
The company has retained the terms of the original offering, including a price of US$3.65 per unit.
Each unit comprises one common share and half a warrant. Each full warrant can be exercised at US$5.10 for 18 months from the closing date.
Goldgroup expects to close the placement around 30 September, subject to approvals from the TSX Venture Exchange and NYSE American. Securities issued will carry a four-month-and-one-day statutory hold period under Canadian securities laws.
The company says it plans to use the net proceeds for working capital and general corporate purposes, including advancing its mining and development projects and assessing acquisitions or strategic investments. It has not finalised how the funds will be allocated.
CEO Javier Reyes says the expanded financing would provide flexibility to invest in Goldgroup’s existing portfolio while considering external growth opportunities.
“One of the most important advantages of this financing is that it gives Goldgroup optionality. We can invest aggressively in our highest-return organic opportunities while maintaining the financial strength to act when compelling external opportunities emerge,” Reyes says.
Goldgroup owns four precious-metal assets in Mexico and the US, including the operating Don David Gold Mine and Cerro Prieto Gold Mine. It is also advancing the San Francisco Gold Project in Sonora towards a potential restart and the Back Forty Project in Michigan towards development.
Write to France Pinzon at Mining.com.au
Images: Goldgroup Mining
