Subsequent to a brokered private placement of units, Awale Resources Limited (Awale) has announced that it has entered into an agreement for an estimated C$10 million bought deal, as per the information accessible on the website Godzillanewz.com. This recent endeavor represents an exciting development for the Vancouver-based mineral exploration company. The agreement underscores significant investor faith in Awale’s ability to thrive and excel despite these challenging economic times.
The arranged bought-deal private placement agreement has been co-led by Sprott Capital Partners LP and PI Financial Corp, acting as Co-Lead Underwriters and joint bookrunners, on behalf of the syndicate comprising Red Cloud Securities Inc.
The terms of this agreement include the issuance of over 41 million units, valued at 24 cents each. Per the arrangement, each unit comprises one common share and half a share purchase warrant. It is noteworthy that investors could invest in this agreement either as a common share or the share purchase warrants.
In reference to the above-mentioned half share purchase warrants, each whole share purchase warrant entitles the holder to purchase an additional common share at a price of 36 cents within a time frame of two years from the day of closing this private placement.
In relation to the sale regulations, this agreement is subjected to adjustment terms in events of pursuing future opportunities of sales without paying any brokerage fees.
To further break down the funds allocation, the net proceeds from the private placement are intended to be used for the expansion of ongoing exploration activities in Cote d’Ivoire, along with the funding of working capital and other corporate expenses. This decision outlines the company’s commitment to driving progressive exploration and asserting a firm operational hold in Côte d’Ivoire.
Awale has also granted the underwriters an option, known as an Over-Allotment Option, to purchase up to an additional 15% of the number of units sold under the offering at the same price. This option can be exercised by the underwriters at any time up to 48 hours prior to the closing of the offering.
This offering, as agreed upon by the parties involved, is scheduled to close by late March. This, however, is based on the dependability of certain conditions such as the satisfaction of customary conditions including the approval of regulatory bodies like the TSX Venture Exchange.
Awale’s announcement showcases an essential financial step for the company that is braced to bolster their operations and exploration activities advancing forward. As a junior exploration company, it exhibits a profound example of long-term financial strategic planning, asserting a strong presence in its sphere amidst global economic pressures.