Progress Minerals Announces $10M Equity Financing, Strategic Investment by Sandstorm and 100% Acquisition of Bobosso Project
Vancouver, British Columbia (FSCwire) - Progress Minerals Inc. (“Progress” or the “Company”) is pleased to provide the following updates to its shareholders regarding financing plans and strategic initiatives underway by the Company.
Highlights:
- Raising up to C$10,000,000 in a non-brokered private placement;
- Strategic equity and royalty investments secured with Sandstorm Gold Royalties and another royalty party totalling C$5,000,000;
- 100% acquisition of the Bobosso project in Cte d’Ivoire.
Progress has commenced a non-brokered private placement of up to C$10,000,000 in gross proceeds through the sale of up to 40,000,000 common shares of the Company priced at C$0.25 per common share (the “Offering”).
In connection with the Offering, Sandstorm Gold Royalties (“Sandstorm”) has agreed to subscribe for 10,000,000 common shares representing an investment of C$2,500,000. In exchange for this commitment, Sandstorm will receive a 1% NSR covering Progress’ current portfolio of mineral properties in Burkina Faso and Cte d’Ivoire, as well as a right-of-first-refusal on any future royalty and metal stream sales undertaken by the Company. In additional to the Sandstorm commitment, a second royalty company has committed to invest alongside Sandstorm on the same terms (including receiving a 1% NSR), bringing the total strategic investment commitments to C$5,000,000 as part of the Offering.
The net proceeds from the Offering shall be used for exploration activities in Burkina Faso and Cte d’Ivoire, payment of the upfront consideration with respect to the Bobosso acquisition and for general corporate purposes.
The Company reserves the right to adjust the size of the Offering at any time. The common shares issued pursuant to the Offering will be subject to a statutory four month and one day hold period. A finder’s fee equal to 8% may be payable in connection with the Offering to eligible finders for subscriptions from arm’s length purchasers. Progress intends to complete the Offering on or about June 29, 2018.
Progress is also pleased to announce that it has signed a binding memorandum of understanding (the “MOU”) with Predictive Discovery Ltd. (“Predictive”) and West African Venture Investment LLC (“WAVI”) pursuant to which Progress will acquire a 100% interest in the Bobosso project in Cte d’Ivoire. The terms of the MOU provide that Progress will make an upfront payment of C$1,150,000 in cash and potential bonus payments tied primarily to the achievement of production on up to a maximum of three mine developments. Bonus payments will be set at US$10 per ounce of gold within a proven and probable reserve and will accrue no earlier than the point in time when Progress has completed a bankable feasibility study and received a mining license. Progress has the flexibility to satisfy bonus payments through the issuance of common shares, subject to certain conditions. The completion of the Bobosso purchase is subject to a number of conditions and is expected to be completed on or prior to August 31, 2018.