19:17:27 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Euro Sun Mining Inc (2)
Symbol ESM
Shares Issued 111,786,029
Close 2020-05-14 C$ 0.445
Market Cap C$ 49,744,783
Recent Sedar Documents

Euro Sun increases overallotment option of financing

2020-05-15 14:37 ET - News Release

An anonymous director reports

EURO SUN MINING ANNOUNCES UPSIZING OF PREVIOUSLY ANNOUNCED BOUGHT DEAL PUBLIC OFFERING OF UNITS

Euro Sun Mining Inc. has entered into an amending agreement with Sprott Capital Partners LP on its own behalf and, if applicable, on behalf of a syndicate of underwriters pursuant to which the underwriter has agreed to purchase, on a bought deal basis, 51,282,052 units of the company at a price of 39 cents per unit for gross proceeds of approximately $20-million. Each Unit is comprised of one (1) common share in the capital of the Company (each, a "Common Shares") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant") entitling the holder to purchase one Common Share (each, a "Warrant Share") at C$0.55 at any time on or before the date which is thirty-six months after the Closing Date (as defined below).

The Company will grant to the Underwriter an option to cover over-allotments and for market stabilization purposes (the "Over-Allotment Option") to purchase up to that number of additional Units equal to 15% of the Offering size at the Issue Price. The Over-Allotment Option will be exercisable in whole or in part, at any time and from time to time, for a period of 30 days from and including the Closing Date. If the Over-Allotment Option is exercised in full, an additional C$3,000,000 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be approximately C$23,000,000.

The Company intends to use the net proceeds of the Offering for the exploration and development of the Company's projects, including permitting and feasibility study, and for working capital purposes.

The Offering is scheduled to close on or about June 5, 2020, or such other date as may be agreed to between the Company and the Underwriter (the "Closing Date") and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (the "TSX") and the applicable securities regulatory authorities.

On the Closing Date, the Company shall pay to the Underwriters a cash commission of 7% of the gross proceeds raised under the Offering (including in connection with the exercise of the Over-Allotment Option). In addition, on the Closing Date, the Company shall issue to the Underwriters warrants of the Company (the "Broker Warrants"), exercisable for a period of 24 months following the Closing Date, to acquire in aggregate that number of Units which is equal to 7% of the number of Units sold under the Offering (including Units issued in connection with the exercise of the Over-Allotment Option) at an exercise price equal to the Issue Price.

The Units will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, other than Quebec, pursuant to National Instrument 44-101 -- Short Form Prospectus Distributions and will be offered in the United States and to United States persons that are "institutional accredited investors" within the meaning of the United States Securities Act of 1933, as amended ("U.S. Securities Act"), on a private placement basis pursuant to one or more exemptions from the requirements of the U.S. Securities Act, and may also be offered on a private placement basis in certain jurisdictions outside of Canada and the United States pursuant to applicable prospectus exemptions.

About Euro Sun Mining Inc.

Euro Sun is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second largest gold deposit in Europe.

We seek Safe Harbor.

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