Thesis Gold Increases Private Placement Offering to C$24 Million
Significant Increase in Private Placement Offering
Thesis Gold (TSXV: TAU | WKN: A3EP87 | OTCQX: THSGF) has recently made headlines by elevating its previously announced underwritten offering from C$20 million to an impressive C$24 million. This decisive move is a clear indication of substantial investor demand, showcasing strong confidence in the company’s strategic direction and potential for growth.
Details of the Offering
The modified offering will be made up of various classes of common shares categorized as "flow-through shares" linked to Canadian exploration expenses. Specifically, it involves:
Classes of Flow-Through Shares
The offering will consist of:
- 5,770,000 BC CEE Flow-Through Shares priced at C$1.56, totaling C$9,001,200 in gross proceeds.
- 8,660,000 National CEE Flow-Through Shares priced at C$1.445, yielding C$12,513,700 in gross proceeds.
- 1,930,000 Traditional Flow-Through Shares priced at C$1.30, leading to C$2,509,000 in gross proceeds.
Once combined, these offerings result in a total that reinforces the significant interest from the investor community.
Underwriter Commitment and Support
Scotia Capital Inc. is the sole bookrunner, with Clarus Securities Inc. acting as the co-lead underwriter, forming a robust syndicate of underwriters to manage this offering effectively. To enhance market stability, the underwriters will also have the flexibility to purchase up to an additional 15% of the offering to cover any over-allotments.
Strategic Partnerships and Participation
Centerra Gold Inc. holds certain rights, allowing them to maintain their shareholding in Thesis Gold and has indicated its intention to take part in this offering in alignment with those rights. This partnership illustrates the collaborative opportunities available within the mining sector, emphasizing shared goals and mutual benefits.
Utilization of Proceeds for Exploration
Thesis Gold plans to allocate the gross proceeds from this offering towards eligible “Canadian exploration expenses” related specifically to its Lawyers Ranch project situated in British Columbia. This initiative is part of a broader strategy to transform the project into a leading entity within the growing global precious metals landscape.
Qualifying Expenditures and Expectations
Funds raised will contribute to Qualifying Expenditures deemed as “flow-through mining expenditures,” which are defined under Canadian tax laws. Furthermore, these expenditures associated with the BC CEE Flow-Through Shares will enable timely and effective exploration activities on the Lawyers Ranch project.
Clarity on the Closing Date and Regulatory Approval
The offering is anticipated to close by early July, subject to regulatory conditions and approvals laid out by the TSX Venture Exchange. This step is crucial for ensuring compliance and fostering a transparent investment environment.
Overview of Thesis Gold
Thesis Gold is dedicated to maximizing the potential of the Lawyers-Ranch Project positioned within the prolific Toodoggone Mining District. Recent assessments have unveiled solid project economics, highlighting a 35.2% after-tax internal rate of return (IRR) alongside an after-tax net present value (NPV) of C$1.28 billion. The company's ambitious 2025 roadmap involves a comprehensive exploration and drilling program, the development of a Pre-Feasibility Study, and initiation of the Environmental Impact Assessment Process. These undertakings aim to propel the Lawyers-Ranch Project into a forefront position within the industry.
Contact Information
For additional details or investor relations inquiries, please connect with:
Kettina Cordero
Vice President Investor Relations
Email: Kettinac@thesisgold.com
Tel: +1 604-417-2574
Frequently Asked Questions
What is the purpose of this private placement offering?
The proceeds will primarily fund eligible Canadian exploration expenses linked to the Lawyers Ranch project, enhancing its exploration and development potential.
Who are the underwriters for the offering?
Scotia Capital Inc. serves as the sole bookrunner, with Clarus Securities Inc. acting as the co-lead underwriter in collaboration with other syndicate members.
When is the estimated closing date for the offering?
The offering is expected to close on or before early July, subject to various regulatory approvals and conditions.
How does this funding impact Thesis Gold?
Increased funding allows Thesis Gold to pursue vital exploration projects, thereby potentially increasing company value and investment returns.
What are flow-through shares?
Flow-through shares are a type of investment in Canadian resource companies that enable tax benefits related to exploration spending for investors, which Thesis Gold is utilizing for funding purposes.
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