Business
Volcanic Closes $8.6 Million Financing, Silvercorp Elects to Maintain 19.9% Pro-Rata Interest
(TheNewswire) Vancouver, Canada - TheNewswire - October 20, ...
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"Volcanic Closes $8.6 Million Financing, Silvercorp Elects to Maintain 19.9% Pro-Rata Interest\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n Vancouver, Canada -\n \n \n TheNewswire -\n \n \n October 20,\n \n \n 2020 - Volcanic Gold Mines Inc. (TSXV:VG),\n(\"Volcanic\" or the \"Company\")\n \n \n is pleased to announce that it has closed its previously\nannounced over-subscribed bought deal financing (the\n\"\n \n \n Offering\n \n \n \"), and a concurrent private placement (the\n\"\n \n \n Concurrent Private\nPlacement\n \n \n \") with its largest shareholder,\nSilvercorp Metals Inc. (\"\n \n \n Silvercorp\n \n \n \"), for aggregate gross\nproceeds of approximately $8.6 million (the \"\n \n \n Financing\n \n \n \").\n \n \n \n \n Pursuant to the Offering, Volcanic issued 12,546,500\nunits of the Company (the \"\n \n \n Units\n \n \n \"), including 1,636,500 Units issued\nin connection with the exercise in full of the over-allotment option\ngranted to the Underwriters (as defined below) in connection with the\nOffering, at a price of C$0.55 per Unit (the \"\n \n \n Issue Price\n \n \n \")\nfor aggregate gross proceeds of C$6,900,575. The Offering was\ncompleted through a syndicate of underwriters led by Haywood\nSecurities Inc., and including Canaccord Genuity Corp. (collectively,\nthe \"\n \n \n Underwriters\n \n \n \").\n \n \n \n \n Pursuant to the Concurrent Private Placement, Volcanic\nissued 3,117,100 Units to Silvercorp at the Issue Price for aggregate\ngross proceeds of C$1,714,405. Silvercorp, which held approximately\n19.9% of the issued and outstanding shares of Volcanic prior to the\nOffering, exercised its participation right to maintain its 19.9%\ninterest upon closing of the Financing. The securities issued to\nSilvercorp\n \n \n are subject to a four month hold\nperiod\n \n \n which will run until February 21,\n2021.\n \n \n \n \n Each Unit consists of one common share in the capital\nof the Company (a \"\n \n \n Common\nShare\n \n \n \") and one-half of one Common Share\npurchase warrant (a \"\n \n \n Warrant\n \n \n \"). Each whole Warrant entitles\nthe holder thereof to purchase one Common Share at a price of C$0.70\nuntil April 20, 2022.\n \n \n \n \n In connection with the Offering, the Underwriters\nreceived a cash commission of 6.0% of the gross proceeds of the\nOffering, subject to a reduced ca...