1911 Gold raising $31 million from upsized bought deal financing

1911 Gold Corp. [AUMB-TSXV] has announced details of a upsized bought deal financing that is now expected to raise $31 million, up from an earlier $20 million target. The company has said it intends to use net proceeds from the upsized offering to fund ongoing exploration and development activities at its True North Gold Project in Manitoba, including technical studies.

1911 shares were active on the news, easing 11.9% or $0.085 to 62.5 cents. The shares trade in a 52-week range of $1.54 and 20.5 cents.

Under the terms of the upsized offering, the underwriters have agreed to purchase on a bought deal basis, 7.8 million units priced at 64 cents per unit and 12.6 million “Canadian development expenses” flow-through units (the CDE units) priced at 79.3 cents per unit.

The underwriters are also purchasing a combination of:

• “Canadian exploration expenses” flow-through units (the Tranche 1 CEE units) priced at 86.4 cents per unit.
• “Canadian exploration expenses” flow through units (the Tranche 2 CEE Units) priced at $1.011 per unit.
• “Canadian exploration expenses” flow-through units (the Tranche 3 CEE Units) and together with the units, CDE Units, Tranche 1 CEE Units and Tranche 2 CEE units at a price of 75.2 cents per Tranche 3 Unit.
• CDE Units at the CDE issue price and units at the issue price.

Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at a price per warrant share of $1.00 for 24 months from the closing date of the upsized offering.

Each CDE unit will consist of one common share and one-half warrant, each to be issued as a “flow-through share” with respect to “Canadian development expenses” that qualify as “reaccelerated Canadian development expenses” (within the meaning of the Tax Act).  (Please see the company’s press release for further details Tranche 1 and Tranche 2 CEE units).

In addition, the company has granted the underwriters an option to purchase up to an additional 15% of the upsized offering in any combination of units at their respective issue prices. That option can be exercised, in whole or in part, until the date which is 30 days from closing, which is expected to occur on July 14, 2026.

On Friday, 1911 shares were unchanged at $1.05 and trade in a 52-week range of $1.54 and 15 cents.

1911’s portfolio includes 63,000 hectares within and adjacent to the Archean Rice Lake greenstone belt in Manitoba. It also owns the True North mine and mill complex at Bissett. Other assets include numerous past-producing gold operations located within trucking distance of the fully built and permitted True North mine and mill complex. The company is positioning itself to restart operations in 2027.