Orosur Mining (TSX-V:OMI) has closed a private placement raising C$16 million ($16.12 million) to advance its Anzá Exploration Project in Colombia.
The company sold 50 million units at C$0.32 each, with proceeds including C$2 million from the full exercise of the agent’s option. Each unit comprises one common share and half a warrant, with whole warrants exercisable at US$0.32 ($0.45) for 24 months.
Orosur says the net proceeds will fund operations into late 2027, principally advancing the Anzá Project alongside general working capital and corporate purposes.
Following the placement, Orosur will have approximately 452.2 million common shares on issue. The 50 million new shares are expected to be admitted to trading on AIM at 8:00am UK time today (7 October), ranking equally with existing shares.
An application has also been made for 25 million common shares to be admitted to the company’s block listing facility to satisfy future warrant exercises, though the warrants will not be admitted to trading.
Some 26.6 million units were issued under Canadian prospectus exemptions, with the underlying securities not subject to hold periods under Canadian securities legislation.
The placement remains subject to final approval from the TSX Venture Exchange. The securities have not been registered under US securities laws and may not be offered or sold in the US absent registration or exemption.
Red Cloud Securities acted as sole agent and bookrunner, receiving a C$250,000 cash commission. UK brokers Turner Pope Investments and Greenwood Capital Partners received aggregate commissions of £239,760 ($455,516).
Orosur Mining is a South American-focused explorer and developer focused on gold and base metals.
Write to Paula Fabe at Mining.com.au
Main image: Orosur Mining
