This is why the shares have been held down during this run 04:43 PM EDT, 08/17/2020 (MT Newswires) -- First Mining Gold Corp. (TSX: FF, OTCQX: FFMGF, FRANKFURT: FMG) after trade Monday entered into an agreement with a syndicate of underwriters that has agreed to purchase, on a bought deal basis, 40 million units of the company at a price of $0.50 per Unit for gross proceeds of approximately $20 million
According to a statement, Each Unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each Warrant will entitle the holder to acquire one additional Common Share at a price of $0.70 for a period of 24 months following the closing of the Offering.
The company has also granted the Underwriters an option to sell up to an additional 6 million Units at the Offering Price for additional gross proceeds of up to $3 million. The Over-Allotment Option shall be exercisable in whole or in part at any time prior to the date that is 30 days after the closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes. In the event that the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering to First Mining will be approximately $23 million.
The company said it intends to use the net proceeds of the Offering for exploration, development and permitting activities at its Canadian gold projects, potential acquisitions, as well as for working capital and general corporate purposes.
The Units will be offered by way of a prospectus supplement to the company's base shelf prospectus dated June 24, 2019.
The Offering is scheduled to close on or before August 26, 2020 and is subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange.
Price: 0.5300, Change: +0.0100, Percent Change: +1.92