1 billion shares Sandfire Resources America closes $30M rights offering
2020-12-23 18:14 ET - News Release
Ms. Nancy Schlepp reports
SANDFIRE RESOURCES AMERICA INC. CLOSES RIGHTS OFFERING
Sandfire Resources America Inc. has closed its previously announced rights offering, issuing 200,539,763 common shares of the company for gross proceeds of $30,080,965, representing 100 per cent of the total rights offered.
The company's largest shareholder, Sandfire B.C. Holdings Inc., fully exercised its basic subscription privilege to purchase its pro rata share of the common shares offered, being 170,869,433 common shares, and also purchased an additional 17,739,705 common shares through the exercise of its additional subscription privilege, for a total subscription of 188,609,138 common shares.
In total, 181,725,334 common shares issued in the rights offering were distributed under basic subscription privileges, of which 59,379 were distributed to insiders of the company and 181,665,955 were distributed to non-insiders. Common shares totalling 18,814,429 were issued under additional subscription privileges, up to 50,000 of which were distributed to insiders of the company and up to 18,764,429 were distributed to non-insiders. To the knowledge of the company, no person became an insider as a result of the rights offering.
Upon completion of the rights offering, the total number of issued and outstanding common shares of the company is now 1,022,752,794. Sandfire B.C. now owns 86.93 per cent of the company's issued and outstanding common shares. The company did not pay any fees or commissions in connection with the distribution of securities in the rights offering.
The company intends to use the net proceeds of the rights offering to further advance the Black Butte copper project, repay loans owed to Sandfire B.C. and for general working capital purposes. Further details of the rights offering are contained in the company's rights offering circular, which has been filed on SEDAR under the company's profile.
About Sandfire Resources America Inc.
Sandfire Resources America is a growth company focused on the exploration, development and mining of its 100-per-cent-owned flagship property, the Black Butte copper project in central Montana, United States. The company is led by a highly experienced executive management team that has a successful record of building shareholder value through exploration, corporate finance and mine development.