Business
Benchmark Closes Unit Offering for Gross Proceeds of $6.15 Million
Edmonton, Alberta--(Newsfile Corp. - December 30, 2019) - Benchmark Metals Inc. (TSXV: BNCH)...
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[{"type":"text","content":"Benchmark Closes Unit Offering for Gross Proceeds of $6.15 MillionEdmonton, Alberta--(Newsfile Corp. - December 30, 2019) - Benchmark Metals Inc. (TSXV: BNCH) (OTCQB: CYRTF) (WKN: A2JM2X) (the \"Company\" or \"Benchmark\") is pleased to announce that it has completed the closing of its previously announced private placement (the \"Offering\") of 13,673,334 flow-through units (the \"FT Units\"), which were sold at an offering price of $0.45 per FT Unit to raise aggregate gross proceeds to the Company of $6,153,000. Each FT Unit consists of one (1) flow-through common share of the Company (a \"FT Share\") and one-half (1/2) of a non flow-through common share purchase warrant (each whole common share purchase warrant, a \"Warrant\"). Each Warrant is exercisable to acquire one (1) additional common share of the Company (\"Common Share\") at an exercise price of $0.40 per Common Share until December 30, 2021. All of the Common Shares and Warrants comprising the FT Units were resold (the \"Resale Securities\") by subscribers of the FT Units under the Offering to purchasers arranged by the Agents (defined below).Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, purchased 2,260,000 Resale Securities (comprised of 2,260,000 Common Shares and 1,130,000 Warrants) resulting in Mr. Sprott holding, together with his prior holdings, approximately 14.2% of Benchmark's issued and outstanding Common Shares, based upon 110,053,273 Common Shares outstanding following completion of the Offering. If Mr. Sprott were to exercise all of his warrants to purchase Common Shares including the Warrants, he would hold a 19.85% partially-diluted ownership position in Benchmark.The Offering was completed pursuant to an agency agreement dated December 30, 2019 between the Company, Sprott Capital Partners LP as lead agent (the \"Lead Agent\") and PI Financial Corp. (collectively with the Lead Agent, the \"Agents\"). In respect of the closing, the Company paid a cash commission to the Agents of 6.0% of the gross proceeds raised, and issued 820,400 non-transferable common share purchase warrants (the \"Agents' Warrants\") exercisable to purchase up to 820,400 Common Shares at $0.45 per Common Share until December 30, 2021.The gross proceeds from the sale of the FT Shares will be used only to finance further qualifying C...