Sun Peak Metals (TSX-V:PEAK) has doubled its non-brokered private placement to C$10 million ($10.08 million) due to ‘strong’ investor demand.
The company increased the offering from the previously announced C$5 million, with amended terms consisting of up to 25 million units priced at C$0.40 per unit. Each unit comprises one common share and half a warrant, with each full warrant exercisable at C$0.55 for two years from closing.
Sun Peak notes that the warrants include an accelerated expiry provision. If the company’s volume-weighted average share price equals or exceeds C$1.10 for 10 consecutive trading days on the TSX Venture Exchange, the warrants will expire 30 days after the company provides acceleration notice or issues a news release announcing the acceleration.
The company intends to use the net proceeds for exploration on its projects in Saudi Arabia and Ethiopia, offering costs, and general working capital.
Sun Peak holds 13 exploration licences totalling 1,072km2 in Saudi Arabia along established volcanogenic massive sulphide and gold trends, with applications pending for two additional licences covering approximately 200km2. Additionally, it holds the Shire Project in Ethiopia, comprising six exploration licences over approximately 1,450km2.
The securities will be subject to a four-month and one-day hold period under applicable securities laws. The offering requires regulatory approvals including TSX Venture Exchange approval, with finders’ fees potentially payable under terms to be disclosed later if applicable.
Sun Peak Metals in an explorer, with a portfolio siting within the Arabian-Nubian Shield. Notable deposits in the region include Jabal Sayid and Mansourah in Saudi Arabia; and the Bisha mine and Asmara projects in Eritrea.
Write to Paula Fabe at Mining.com.au
Main image: Sun Peak Metals
