Scandium Canada (TSX-V:SCD) is raising C$10 million ($10.43 million) through a bought deal life offer to fund exploration expenditure at Crater Lake and the development of the company’s proprietary aluminium-scandium alloys.
A bought deal is a financial underwriting contract where an investment bank or syndicate will purchase the entirety of securities on offer.
The company will issue 45.6 million units at C$0.22 each, comprising one share and one purchase warrant.
Each warrant held will allow the shareholder to acquire one additional share at C$0.30 over a 30-month period.
Research Capital is acting as the lead underwriter and sole bookrunner for this capital raise, acting on behalf of a syndicate of underwriters.
Underwriters are eligible to subscribe for a total of 6.82 million units under the same conditions to raise an additional C$1.5 million.
Funds will be used to conduct exploration activities across the Crater Lake Project ahead of a Prefeasibility Study, as reported by Mining.com.au.
Comprising 96 contiguous exclusive exploration rights over a 47km2 area, Scandium Canada’s Crater Lake Project is located in Nunavik, Québec.
The company will also focus on developing its proprietary aluminium-scandium alloys towards commercialisation.
Write to Maddison Elliott at Mining.com.au
Images: Scandium Canada
