Onyx Gold Secures $15 Million in Strategic Financing Deal
Onyx Gold's Recent Financing Announcement
Onyx Gold Corp. (TSXV: ONYX) has successfully arranged a financing deal totaling $15 million. This agreement includes a strategic partnership with Cormark Securities Inc. and Canaccord Genuity Corp. acting as co-lead underwriters, solidifying positions as strong players in the mining industry.
Details of the Financing Arrangement
The financing, described as a 'bought deal' private placement, will see Onyx issue approximately 4,740,000 common shares categorized as 'flow-through shares' at a price of $2.11 per share. This move is expected to generate gross proceeds of around $10 million. Additionally, the issuance of 3,333,500 common shares at a price of $1.50 each will contribute a further $5 million, bringing the total proceeds to over $15 million.
Granting of Underwriters' Options
As part of the deal, Onyx has granted the underwriting team an option to increase the size of the offering by an additional $2 million. This option allows flexibility to adjust the offering's scale, ensuring that the financing remains robust and meets investor demand.
Utilization of Proceeds
The funds raised from the flow-through shares will be directed toward incurring eligible Canadian exploration expenses. These expenditures are critical for Onyx as they are focused on enhancing their mining operations and projects in key jurisdictions, with a commitment to responsible exploration practices.
Exploration Focus and Project Details
Onyx Gold operates primarily in the well-established mining regions of Timmins, Ontario, and Yukon Territory. The company holds an impressive portfolio exceeding 443 km² across three projects, which include the Munro-Croesus Gold Property, Golden Mile, and Timmins South. Notably, these projects present favorable accessibility and are strategically located near essential infrastructure.
Future Prospects and Closing Timeline
While the closing date of this offering is anticipated around October 2, 2025, it remains contingent on receiving all necessary regulatory approvals, including the TSX Venture Exchange's conditional approval. Onyx aims to satisfy regulatory requirements to ensure a smooth transaction, which is crucial for maintaining investor confidence and corporate credibility.
Company Overview
Onyx Gold Corp. is focused on exploration within lucrative mining districts, emphasizing sustainable practices in its operations. With a dedicated team at its helm, Onyx aims to maximize shareholder value, leveraging recent discoveries and a disciplined approach to capital allocation.
Leadership Leadership and Vision
Under the leadership of President & CEO Brock Colterjohn, Onyx stands committed to responsible exploration, which is essential as the mining sector faces increasing scrutiny regarding environmental and social governance. Colterjohn emphasizes the importance of innovation and adherence to sustainability in navigating the complex landscape of mineral exploration.
Frequently Asked Questions
What is the purpose of the $15 million financing?
The financing aims to support Onyx's exploration initiatives and incur eligible Canadian exploration expenses while strengthening its operations in key mining jurisdictions.
Who are the underwriters involved in this deal?
Cormark Securities Inc. and Canaccord Genuity Corp. are acting as co-lead underwriters for Onyx in this financing arrangement.
What are 'flow-through shares'?
Flow-through shares are a type of investment that provides tax benefits to investors, allowing the company to raise funds while giving investors opportunities to claim deductions against their taxable income.
When is the expected closing date for the financing?
The financing is expected to close around October 2, 2025, pending regulatory approvals.
Where are Onyx's key projects located?
Onyx Gold's main projects are located in Timmins, Ontario, and the Yukon Territory, both known for their rich mining potential.
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