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TORONTO, June 01, 2018 (GLOBE NEWSWIRE) -- Probe Metals Inc.(TSX-V:PRB) (“Probe” or the “Company”) is pleased to announce that it has entered into an amended agreement with Sprott Capital Partners (“Sprott”) in its capacity as lead underwriter on its own behalf and on behalf of a syndicate of underwriters including Canaccord Genuity Corp., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., BMO Nesbitt Burns Inc., CIBC Capital Markets, Industrial Alliance Securities Inc., and Mackie Research Capital Corp. (collectively with Sprott, the “Underwriters”), to increase the size of the bought deal financing originally announced on May 22, 2018. Under the amended agreement, the Underwriters have agreed to purchase 7,380,000 flow-through units of the Company (“FT Units”) at a price of C$1.90 per FT Unit for gross flow-through proceeds of $14,022,000 and 8,377,566 non flow-through units of the Company (“Hard Units”) at a price of C$1.15 per Hard Unit for gross non flow-through proceeds of $9,634,200.90 (together, the “Underwritten Offering”). The Company also intends to complete a concurrent non-brokered placement of up to 900,000 Hard Units for gross proceeds of $1,035,000 (the “Non-Brokered Placement”). The aggregate proceeds from the Underwritten Offering and the Non-Brokered Placement (collectively, the “Offering”) total $24,691,200.
Each FT Unit or Hard Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company for 2 years from the closing of the Offering (the “Closing”) at a price of C$1.45.
The gross proceeds from the Offering will be used to fund exploration on Probe's projects in Qubec and for working capital purposes.
The Offering will be effected by way of a private placement to qualified investors in such provinces of Canada as the Underwriters may designate, and otherwise in those jurisdictions where the Offering can lawfully be made. The securities to be issued under the Offering will have a hold period of four months and one day from Closing.
Closing is expected to occur on or about June 19, 2018, and is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. In consideration for their services, the Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering.
About Probe Metals:
Probe Metals Inc. is a leading Canadian gold exploration company focused on the acquisition, exploration and development of highly prospective gold properties. The Company is committed to discovering and developing high-quality gold projects, including its key asset the Val-d’Or East Gold Project, Quebec. The Company is well-funded and controls a strategic land package of approximately 1,000-square-kilometres of exploration ground within some of the most prolific gold belts in Quebec. The Company was formed as a result of the sale of Probe Mines Limited to Goldcorp in March 2015. Goldcorp currently owns approximately 13.7% of the Company.
On behalf of Probe Metals Inc.,