Hercules Metals (TSX-V:BIG) has increased its bought-deal private placement to C$45 million ($45.7 million), citing strong investor demand.
The company now plans to issue 51.725 million common shares at C$0.87 each, with closing expected on or about 12 November.
Underwriters can acquire up to a further 5,747,200 shares at the same price, potentially raising another C$5 million. The option can be exercised in whole or in part until 48 hours before closing.
If fully exercised, the placement would generate gross proceeds of C$50 million.
Hercules says it plans to use the net proceeds to advance its wholly owned Hercules Copper Project in Idaho, US, alongside working capital and general corporate purposes.
The financing remains subject to regulatory approvals, including conditional acceptance from the TSX Venture Exchange (TSX). Shares issued under the placement will carry a four-month-and-one-day statutory hold period.
The increased raise follows a C$4.5 million personal investment commitment from Hercules’ incoming leadership team before it assumed management of the company in September, as previously reported by Mining.com.au.
The former Arizona Sonoran team — led by CEO George Ogilvie — joined Hercules after completing the sale of Arizona Sonoran to Hudbay Minerals (TSX:HBM).
Barrick Mining (NYSE:B) is also a strategic investor in Hercules, which says continued drilling will underpin growth at its Leviathan porphyry copper system.
Hercules Metals is a Canadian explorer advancing the wholly owned Hercules Project within a prospective porphyry copper district in western Idaho.
Write to France Pinzon at Mining.com.au
Main image: Hercules Metals
