Gladiator Metals aims to raise $7 million from placement deal

Gladiator Metals Corp. [GLAD-TSXV, GDTRF-OTC-Pink, ZX7-FSE] said it has struck a deal with a syndicate of agents in connection with a “best-efforts” brokered private placement offering that aims to raise up to $7.0 million.

Under the agreement, the private placement will consist of units priced at 55 cents per unit, with each unit consisting of one common share and one half of one common share purchase warrant, as well as flow-through units to be sold to charitable purchasers at 79 cents per unit. Each Charity FT unit will consist of one common share that will qualify as flow-through shares to be issued as part of a charity arrangement and one half of one warrant.

Each warrant will entitle the holder to acquire one common share at an exercise price of 90 cents for 24 months following closing, which is expected to occur on June 28, 2023.

The company said it will grant the agents an option to increase the size of the offering by up to an additional 15% in aggregate proceeds of units. That option can be exercised in whole or in part at any time up to 48 hours before the closing date.

Details of the financing were released after the close of trading n June 8, 2023, when Gladiator shares closed unchanged at 59 cents. The shares are currently trading in a 52-week range of 73 cents and 10 cents.

Gladiator is focused on advancing the Whitehorse Copper Project, an advanced-stage copper-molybdenum-silver-gold skarn exploration project in the Canadian Yukon. The project covers approximately 5,380 hectares in the Whitehorse Mining District.

Gladiator can acquire a 100% interest in the Whitehorse Project under a six-year option deal announced in November, 2022. The optionor is H. Coyne & Son Ltd. It can exercise the option by spending $12 million on the project, making staged payments of $300,000 in cash and issuing 15 million shares over six years. Once the option is exercised, the company must pay the optionor, a 1.0% net smelter returns royalty on the Whitehorse Copper Project.

The company has recently completed a maiden 2,632-metre diamond drilling program at the Whitehorse Project. Another 2,000 metres of drilling is scheduled to start in July. The maiden program targeted the Cowley Park prospect. In a press release on June 5, 2023, the company said it has received assay results from the first seven of 14 holes.

“All holes returned significant intercepts confirming the width and continuity of mineralization previously targeted at Cowley Park with mineralization remaining open in all directions, with results including hole CPG-006, which returned 16 metres at 2.36% copper from 79 metres within 92 metres of 0.71% copper from 67 metres.

“These shallow results confirm the continuity of copper skarn mineralization at Cowley Park as well as highlighting the potential for a larger mineralized envelope, not previously considered, or tested by previous operators,’’ the company said in a press release.