Scottie Resources (TSX-V:SCOT) has signed a C$16.8 million ($18.78 million) financing agreement with privately held Ocean Partners UK to help fund the group’s exploration and development at its Scottie Gold Mine Project in British Columbia.
The placement is in two parts – about 11 million charitable flow-through shares priced at C$1.23 each to generate C$13.5 million, and 3.75 million regular shares at C$0.88 to raise a further C$3.3 million.
Scottie Resources expects to close the offer on 30 July.
Proceeds from the flow-through shares will be used for eligible Canadian exploration expenditures at the company’s projects, while the non-flow-through proceeds will fund engineering studies, permitting, and general operational expenses.
Flow-through shares typically offer Canadian based investor tax benefits.
Ocean Partners will receive 6.82 million shares in Scottie Resources, as well as up to 3.75 million non-flow-through shares at C$0.88 per share to a total of around C$3.3 million.
As reported by Mining.com.au earlier this week (8 July), the company’s main priority for funding is to progress its Scottie Direct Shipping Ore (DSO) Project towards production.
Scottie Resources is an exploration company focused on expanding known mineralisation from historical mines and advancing gold targets to produce a “high-margin” DSO product.
Write to Maddison Elliott at Mining.com.au
Images: Scottie Resources
