Local newspaper takeQueenston set to raise $14 million
Queenston Mining Inc. has announced a $14 million share offering as the company continues to invest in its Kirkland Lake gold exploration projects.
The company has entered into an agreement with Primary Capital Inc., as lead agent on behalf of a syndicate of agents.
The offering will consist of 2 million units of Queenston for gross proceeds of $14 million. Each unit will consist of one flow through share and one warrant. Each warrant will entitle the holder to purchase one additional common share of the company for $7.50 during the period of 18 months following the closing of the offering.
One million units of the offering are on a private placement guaranteed basis and up to one million units are on a best efforts basis.
Queenston will pay the syndicate a cash commission of six percent of the gross proceeds and issue broker warrants to agents to acquire the number of units that is equal to six percent of the offered securities sold. The broker warrants expire 12 months after the closing date.
Queenston says the financing will increase the company's working capital to $40 million and will be used to continue high level exploration projects in the Kirkland Lake Gold Camp. The financing is scheduled to close Sept. 15 and is subject to the approval of the Toronto Stock Exchange.
The company has five joint ventures with Kirkland Lake Gold as well as one with Newstrike in addition to its 100 percent owned properties that include the Upper Beaver, Upper Canada, McBean, Anoki, Upper Canada and AK property.
Queenston is conducting accelerated exploration with the plan being to advance the Upper Beaver, McBean, Anoki and Upper Canada to production with a centrally located mill.
It is also anticipated some of the Kirkland Lake Gold joint ventures will become gold producers.