Metallic Minerals raising $10 million from upsized bought deal

Metallic Minerals Corp. (MMG-TSXV, MMNGF-USOTC) said Wednesday it is upsizing a previously announced bought deal private placement that is now expected to raise $10 million, up from an earlier $8.0 million target.

The company said it intends to use part of the net proceeds from the sale of units for the exploration and development of its La Plata copper-silver-gold-platinum group elements project in southwestern Colorado and for general corporate purposes and working capital.

Under the terms of the financing, the underwriters have pledged to purchase for sale (with the right to arrange for substitute purchasers) 17.8 million units priced at 28 cents per unit for gross proceeds of $5.0 million; as well as 12.9 million flow-through units (a charity  flow-through unit) priced at 38.5 cents per Charity flow-through unit, for gross proceeds of $5.0 million.

Each unit will consist of one common share and one half of one common share purchase warrant. Each Charity FT unit will consist of one common share and one half of one common share purchase warrant. Each Charity FT unit share and each half of one Charity FT unit warrant comprising a Charity FT Unit will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada). Each whole Unit warrant and Charity FT Unit warrant will entitle the holder to purchase one common share on a non-flow-through basis for 40 cents at any time during a period starting on the date that is 61 days after closing (likely on June 22, 2026) and ending on a date which is 36 months after closing.

The underwriters have been granted the option to purchase for resale up to that number of additional offered securities in any combination of units and Charity FT units at their respective offering prices for additional proceeds of $2.0 million. That option can be exercised in full or in part up to 48 hours prior to closing.

Gross proceeds from the sale of the Charity FT units will be used to incur eligible Canadian exploration expenses that qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act related to the company’s Keno Silver Project in the Canadian Yukon on or before December 31, 2027. All qualifying expenditures will be renounced in favour of the subscribers of the Charity FT units, effective December 31, 2026.

Metallic shares advanced on the news, rising 4.0% or $0.01 to 26 cents. The shares trade in a 52-week range of 47 cents and 19.5 cents.

The road accessible La Plata project covers 33 square kilometres, approximately 26 kilometres northwest of Durango, Colorado.

An expanded 2023 NI 43-101-compliant inferred mineral resource estimate at La Plata highlights a significant porphyry copper-silver resource containing 1.21 billion pounds of copper and 17.6 million ounces of silver, with numerous additional targets showing potential for a district-scale porphyry system.

In Canada, Metallic has consolidated the second largest land position in the high-grade Keno Hill silver district, directly adjacent to Hecla Mining’s [HL-NYSE] operations.