- Enduro Metals (TSXV:ENDR) will undertake a 10-for-1 share consolidation and an up to C$3 million non-brokered private placement with participation from mining luminary Rob McEwen
- The funds will advance ongoing exploration at Enduro’s prospective 688-square-kilometre Newmont Lake project in British Columbia’s Golden Triangle
- Enduro Metals is an exploration company that holds one of the largest junior land positions in British Columbia’s Golden Triangle
- Enduro Metals stock (TSXV:ENDR) has lost 62.50 per cent year-over-year and 85 per cent since 2018, suggesting a potential value opportunity
Enduro Metals (TSXV:ENDR) will undertake a 10-for-1 share consolidation and an up to C$3 million non-brokered private placement with participation from mining luminary Rob McEwen.
Offering details
Enduro will sell up to 75 million units priced at C$0.04 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share for C$0.08 for three years from the date of issuance.
The lead C$1.2 million order for 30 million units stems from an entity controlled by McEwen, who is an existing shareholder. According to Enduro’s official website, the businessman invested C$2.5 million before the current offering.
McEwen is chairman and chief owner of McEwen Mining (TSX:MUX), a diversified small-cap mineral explorer with a 48 percent stake in the Los Azules project in Argentina, one of the top 10 undeveloped copper projects in the world. He is also the founder and former chairman and CEO of Goldcorp, which he grew from a market capitalization of C$50 million to C$8 billion.
Enduro intends to allocate the proceeds to exploration and development of its 688-square-kilometre Newmont Lake project in northwest British Columbia, as well as to general working capital.
The company has outlined four deposit environments of interest across the project, including high-grade epithermal/skarn gold, copper-gold alkalic porphyry mineralization, porphyry-style alteration typical of alkalic copper-gold porphyry systems, and a 9 km x 4 km geochemical anomaly hosting gold, silver, copper, zinc, nickel, cobalt and lead mineralization.
The offer is subject to the approval of the TSXV and marks the cancellation of the private placement announced in June 2023.
All securities issued are subject to a four-month holding period from the date of issuance, as per Canadian securities legislation.
Share consolidation
Enduro also intends to consolidate its common shares on a 10-for-1 basis, reducing its issued and outstanding shares from 240,994,943 to 24,099,494, without taking the offering into account.
The number of post-consolidated shares will be rounded up to the nearest whole number for fractions of 0.5 or greater, or rounded down for fractions of less than 0.5.
An application for the consolidation is underway with the TSXV.
Enduro Metals is an exploration company that holds one of the largest junior land positions in British Columbia’s Golden Triangle.
Enduro Metals stock (TSXV:ENDR) is unchanged, trading at C$0.045 per share as of 10:02 am ET. The stock has lost 62.50 per cent year-over-year and 85 per cent since 2018, suggesting a potential value opportunity.
Join the discussion: Find out what everybody’s saying about this microcap mining stock on the Enduro Metals Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.