Business
Volcanic Gold Mines Closes $8.6 Million Financing, Silvercorp Elects to Maintain 19.9% Pro-Rata Interest
Vancouver, Canada - TheNewswire - October 20, 2020 - Volcanic Gold Mines Inc. (TSXV:VG), ("Volcanic" or the "Company") is pleased to announce that it has closed
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"Vancouver, Canada - TheNewswire - October 20, 2020 - Volcanic Gold Mines Inc. (TSXV:VG), (\"Volcanic\" or the \"Company\") is pleased to announce that it has closed its previously announced over-subscribed bought deal financing (the \"Offering\"), and a concurrent private placement (the \"Concurrent Private Placement\") with its largest shareholder, Silvercorp Metals Inc. (\"Silvercorp\"), for aggregate gross proceeds of approximately $8.6 million (the \"Financing\"). Pursuant to the Offering, Volcanic issued 12,546,500 units of the Company (the \"Units\"), including 1,636,500 Units issued in connection with the exercise in full of the over-allotment option granted to the Underwriters (as defined below) in connection with the Offering, at a price of C$0.55 per Unit (the \"Issue Price\") for aggregate gross proceeds of C$6,900,575. The Offering was completed through a syndicate of underwriters led by Haywood Securities Inc., and including Canaccord Genuity Corp. (collectively, the \"Underwriters\"). Pursuant to the Concurrent Private Placement, Volcanic issued 3,117,100 Units to Silvercorp at the Issue Price for aggregate gross proceeds of C$1,714,405. Silvercorp, which held approximately 19.9% of the issued and outstanding shares of Volcanic prior to the Offering, exercised its participation right to maintain its 19.9% interest upon closing of the Financing. The securities issued to Silvercorp are subject to a four month hold period which will run until February 21, 2021. Each Unit consists of one common share in the capital of the Company (a \"Common Share\") and one-half of one Common Share purchase warrant (a \"Warrant\"). Each whole Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.70 until April 20, 2022. In connection with the Offering, the Underwriters received a cash commission of 6.0% of the gross proceeds of the Offering, subject to a reduced cash commission paid on sales to members of the president's list (the \"Presidents List Sales\") and were issued compensation options (the \"Compensation Options\") exercisable at any time prior to October 20, 2022 at a price of C$0.55 per Compensation Option to purchase such number of units (the \"Compensation Units\") as is equal to 6% (reduced in the case of President's List Sales) of the aggregate number of Units issued pursuant to the Offering...