Mining company E2Gold (ETU) has completed its oversubscribed initial public offering, after raising around C$3.3 million in proceeds.
Through the IPO, the company issued 10.9 million units at $0.20 each, as well as 5.42 million flow-through units at $0.22 each. Each unit contains on common share in E2Gold and one share purchase warrant.
Each unit warrant allows the holder to buy one additional common share in the company, at an exercise price of $0.24 per share. The unit warrants will be exercisable until December 30, 2023.
Each flow-through unit contains one common share in E2Gold, which qualifies as a flow-through share, and half of one share purchase warrant on a non-flow-through basis. Each whole flow-through warrant allows the holders to purchase one more common share in the company for $0.28, until December 30, 2022.
The $3.3 million in proceeds from the IPO will go towards exploration activities at E2Gold’s Hawkins Gold Project. The project, located in north-central Ontario’s Sault Ste Marie and Porcupine Mining Divisions, is approximately 60 kilometres long.
The Hawkins Gold Project consists of 400 single cell mining claims and 19 boundary cell claims, optioned from Pavey Ark Minerals. The project also contains 518 contiguous single cell mining claims, on which E2Gold holds a 100 per cent beneficial interest.
The Hawkins Gold Project hosts an inferred mineral resource of 6.2 million tonnes at 1.65 grams per tonne of gold, for 328,800 ounces of gold.
E2Gold’s common shares should begin trading on the TSX Venture Exchange (TSXV), at opening of business on January 4, 2021. The company will trade under the ticker code ETU.