Minaurum Gold Inc. [MGG-TSXV, MMRGF-OTC, 78M Frankfurt], said Friday it has raised $9.2 million from a bought deal public offering, which includes the full exercise of an over-allotment option.
The company previously said it planned to raise $7 million from an offering of 17.5 million units priced at 40 cents per unit. However, on Friday the company said it has upsized the offering to 23 million units at the same price.
Minaurum shares moved lower on the news, easing 1.5% or $0.005 to 33.5 cents in light trading volume. The shares are currently trading in a 52-week range of 85 cents and 33 cents.
Minaurum is a Mexico-focused explorer which is currently focused on the high-grade Alamos Silver Project in southern Sonora. The company said Red Cloud Securities is acting as sole underwriter and bookrunner.
Under the terms of the financing, each unit consisted of one common share and one-half of one common share purchase warrant. Each warrant can be exercised to acquire one share for 60 cents at any time during a 24-month period after closing.
Minaurum said it intends to use the net proceeds from the financing for the exploration of its mineral projects in Mexico and for general working capital purposes.
The company is engaged in a strategy to build an exploration portfolio with the potential for district-scale gold, silver, and copper discoveries. The projects are located in three key regions: Southern Sonora, Oaxaca, and the Guerrero Gold Belt.
The flagship Alamos Silver, for example, is located in southern Sonora and covers 37,317 hectares in an area located 45 kilometres northwest of Pan American Silver Corp.’s [PAAS-TSX, NASDAQ] Alamo Dorado silver mine. Minaurum is exploring an epithermal vein system.
During the first five months of 2021, Minaurum was focused on preparing the Alamos project for the resumption of a Phase 11 drilling campaign while continuing to advance both the Santa Marta copper-gold volcanogenic massive sulphide (VMS) project and the Aurifero silver-gold project to the drill stage.
Santa Marta is located in the Oaxaca region, while Aurifero is situated in Sonora.
Phase 2 drilling at Alamos began in July, 2020 and 40 holes were drilled before the program was paused in December, 2020, due to the Covid-19 pandemic. Phase 2 followed a Phase 1 program consisting of 18,810 metres in 40 holes.
Minaurum recently said it has begun mobilizing rigs to the project and anticipates drilling at least a further 15,000 metres.
The company said it has taken advantage of a Covid-19 recess to refine and refocus our exploration of the more than 26 veins we have identified in this historic camp.