Scorpio Gold (TSX-V:SGN) has closed an upsized public offering, raising C$10.8 million ($11 million) in gross proceeds to fund exploration at its Manhattan property in Nevada, US.
The company issued 43.2 million common shares priced at C$0.25 each, including 3.2 million shares through the partial exercise of the agents’ over-allotment option.
Velocity Capital Partners (XKLS:7165) acted as sole bookrunner, with Velocity and Raymond James (NYSE:RJF) serving as co-lead agents.
Scorpio Gold paid the agents a combined cash commission of C$613,500 and issued 2.45 million non-transferable broker warrants. Each warrant is exercisable for one common share at C$0.25 for 24 months from the date of issue.
The company says it intends to allocate the net proceeds to exploration at Manhattan, as well as general corporate and working capital purposes.
The offering remains subject to final acceptance by the TSX Venture Exchange (TSX-V).
Scorpio Gold holds a 100% interest in the 4,780-hectare Manhattan district, located within Nevada’s Walker Lane trend.
The property includes the advanced exploration-stage Goldwedge Mine, which has a gravity mill with a maximum capacity of 400 tons per day, and four past-producing pits acquired from Kinross Gold (TSX:K) in 2021.
The consolidated property package contains more than 140,000m of historical drilling, along with existing permits and water rights.
Write to France Pinzon at Mining.com.au
Images: Scorpio Gold
