Business
Montage Gold Closes C$15.25 Million Bought Deal Private Placement of Common Shares
VANCOUVER, BC, April 12, 2023 /CNW/ - Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) is pleased to announce the closing of its "bought deal" privat
About this update from Montage Gold Corp.
[{"type":"text","content":" VANCOUVER, BC, April 12, 2023 /CNW/ - Montage Gold Corp. (\"Montage\" or the \"Company\") (TSXV: MAU) is pleased to announce the closing of its \"bought deal\" private placement offering of 21,786,300 common shares (the \"Offered Shares\") at an issue price of $0.70 per Offered Share (the \"Issue Price\") for gross proceeds of $15,250,410 (the \"Brokered Offering\"), including the full exercise of the option granted to the Underwriters (as defined herein) in connection with the Brokered Offering. The Brokered Offering was led by Canaccord Genuity Corp., as lead underwriter, on behalf of a syndicate of underwriters including BMO Capital Markets, Beacon Securities Limited, and Raymond James Ltd. (collectively, the \"Underwriters\"). The Company intends to issue shortly hereafter, on a non-brokered basis, an additional 2,714,300 Offered Shares at the Issue Price for additional gross proceeds of $1,900,010 (the \"Non-Brokered Offering\", and together with the Brokered Offering, the \"Offering\"). Following closing of the Non-Brokered Offering, the Company will have issued an aggregate of 24,500,600 Offered Shares for total gross proceeds of $17,150,420 under the Offering. The net proceeds from the issue of the Offered Shares are intended to be used for the Company's ongoing exploration and drilling program at the Koné Gold Project, including the advancement of an updated mineral resource estimate and for work related to an updated feasibility study, and for working capital and general corporate purposes, as further described in the Offering Document (as defined below). The Company paid the Underwriters a cash fee equal to 6.0% of the aggregate gross proceeds of the Offered Shares sold under the Brokered Offering (other than in respect of certain president's list subscribers, for which no cash fee was payable) and an advisory fee equal to $114,000.60 in connection with the Non-Brokered Offering. Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (\"NI 45-106\"): (i) 14,285,700 Offered Shares were issued to purchasers resident in Canada and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the \"Listed Issuer Financing Exemption\"); and (ii) 7,500,600 Offered Shares were iss...