Sprott, McEwen back Borealis bought deal financing
Borealis Mining Company Limited [BOGO-TSXV, L4B0-FSE, BORMF-OTC] said it has raised $10 million from a bought deal offering of 17.8 million units priced at 56 cents per unit. The company said it is also pleased to disclose the participation in the offering of financier Eric Sprott and Evanachan Ltd., a corporation controlled by Robert McEwen. Evanachan acquired 1.78 million units in the context of the offering. Prior to the completion of the acquisition, Evanachan owned or controlled 13.5 million shares, representing 16.20% of the company’s shares on an undiluted basis.
Following the completion of the acquisition, Evanachan beneficially owns and controls 15.27 million shares and 892,850 warrants, representing approximately 15.11% of the company’s shares on an undiluted basis and 15.85% on a partially diluted basis.
On Thursday, Borealis shares advanced 1.75% or $0.01 to 58 cents. The shares trade in a 52-week range of 95 cents and 51 cents.
Meanwhile, Eric Sprott said 2176423 Ontario Ltd., a numbered company owned by Sprott, acquired 3.57 million units of Borealis via the bought deal offering for a total consideration of $1.99 million. Prior to the acquisition, Sprott beneficially owned 4.0 million shares and two million warrants representing 4.8% of the outstanding shares on a diluted basis and 7.0% on a partially diluted basis assuming the exercise of such warrants.
Sprott now beneficially owns 7.57 million shares and 3.78 million warrants representing approximately 7.5% of the outstanding shares on a non-diluted basis and 10.5% on a partially diluted basis, assuming exercise of such warrants, thereby requiring the filing of an early warning report.
Each unit consists of one common share and one half of one common share purchase warrant, each of which is exercisable at a price of 78 cents per share for two years from the closing date of the offering.
Net proceeds from the sale of the units will be used by the company to fund exploration and development at the company’s gold projects in Nevada and for working capital and general corporate purposes.
Borealis is a gold mining and exploration company focused on exploration and resumption of production at the Borealis Mine in Nevada. Borealis is a fully permitted mine site, equipped with active heap leach pads, an ADR facility, and all necessary infrastructure to support a heap leach mining operation. In addition to the mine, the property covers 751 unpatented mining claims of approximately 10 acres each totaling approximately 15,020 acres and one unpatented mill site claim of about five acres located in western Nevada. The area is highly prospective for additional high-sulphidation and gold mineralization.