GMTN Closes $18.5 Million Bought Deal ORIGINAL: Gold Mountain Closes $18.5 Million Bought Deal Public Offering
2022-04-21 09:01 ET - News Release
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / April 21, 2022 / Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX:GMTN)(OTCQB:GMTNF)(FRA:5XFA), is pleased to announce that it has closed its previously announced bought deal public offering of 14,800,000 units of the Company ("Units") at a price of $1.25 per Unit for aggregate gross proceeds of $18,500,000 (the "Offering").
In connection with the Offering, Eight Capital acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters including Canaccord Genuity Corp. and Research Capital Corporation (collectively the "Underwriters") pursuant to an underwriting agreement dated April 18, 2022 between the Company and the Underwriters.
Each Unit consisted of one common share of the Company, and one-half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"). The Warrants are governed by a warrant indenture dated April 21, 2022 between the Company and Endeavor Trust Corporation, as warrant agent. Subject to adjustment in certain cases, each Warrant is exercisable into one common share at an exercise price of $1.75 until April 21, 2024.
The Offering was conducted by way of a prospectus supplement dated April 18, 2022 (the "Supplement") to the Company's short form base shelf prospectus dated December 8, 2021.
The Company intends to use the net proceeds of the Offering for the development of the Elk Gold Project, for the repayment of certain debt obligations, and for working capital and general corporate purposes, as further set forth in the Supplement.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any applicable securities laws of any state of the United States (as such term is defined in Regulation S under the U.S. Securities Act) and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States or to, or for the account or benefit of, U.S. Persons.
About Gold Mountain Mining
Gold Mountain is a British Columbia based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project, a producing mine located 57 KM from Merritt in South Central British Columbia. Additional information is available at www.sedar.com or on the Company's new website at www.gold-mountain.ca.
For further information, please contact:
Gold Mountain Mining Corp.
Phone: 778.262.0933
Email: IR@gold-mountain.ca
Website: www.gold-mountain.ca
Twitter: www.twitter.com/goldmtnmine