Mining
Thursday, May 23rd, 2024 2:27 pm EDT
Key Points
- Successful Funding: Midnight Sun Mining Corp. closed a non-brokered private placement, raising $10 million by selling 45,454,544 units at 22 cents per unit.
- Exploration Plans: The company is now sufficiently funded to execute its exploration plans for the Solwezi project in Zambia, including an earn-in with KoBold Metals and a co-operative plan with First Quantum Minerals.
- Use of Proceeds and Stock Options: The proceeds will finance exploration in Zambia and general working capital. Additionally, Midnight Sun granted 4.6 million stock options to directors, officers, employees, and consultants under its stock option plan.
Midnight Sun Mining Corp. has now closed its previously announced non-brokered private placement for gross total proceeds of $10-million. Under the offering, the company sold 45,454,544 units of the company at a price of 22 cents per unit.
“Midnight Sun is now sufficiently funded to execute on all of our exploration plans,” stated Al Fabbro, Midnight Sun’s president and chief executive officer. “Over the last 12 months, we have pulled the plans for our Solwezi project into sharp focus. Starting with our $15.5-million (U.S.) earn-in with KoBold Metals announced in February, which moves our Dumbwa target forward, and followed by the recent announcement of a co-operative exploration plan with First Quantum Minerals to advance near surface oxide-copper targets toward potential near-term cash flow. We have a two-fold attack plan under way, comprised of aggressive drill campaigns on two separate key targets, designed to demonstrate the tremendous value of our copper project, all underpinned by a very significant financing.”
Financing terms
Each unit consists of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for a period of 36 months following the closing date of the offering at an exercise price of 33 cents per share.
The net proceeds of this offering will be used by the company to finance exploration work on its projects located in Zambia, as well as general working capital.
Canaccord Genuity Corp., Red Cloud Securities Inc. and Haywood Securities Inc., acted as finders for the company under the offering.
Finder’s fees of $426,788 will be paid in cash and 1,962,530 finder’s warrants will be issued in connection with the private placement. A total of 1,374,337 finder’s warrants each entitle the finder to purchase one common share of the company for a period of 36 months from closing, at an exercise price of 33 cents and 588,193 of the finder’s warrants each entitle the finder to purchase one common share of the company for a period of 36 months from closing, at an exercise price of 22 cents.
All securities issued pursuant to this private placement, including the common shares underlying the warrants, are subject to a statutory hold period which expires on Sept. 23, 2024.
The completion of this private placement remains subject to final acceptance by the TSX Venture Exchange.
Stock option grant
Midnight Sun has granted stock options to purchase an aggregate of 4.6 million common shares of the company, at an exercise price of 22.5 cents per share, to certain directors, officers, employees and consultants. Four million of these stock options are fully vested upon issuance and expire five years from the date of issue. Six hundred thousand of the granted stock options vest 25 per cent per quarter and expire one year from the date of issue. The stock options are granted pursuant to Midnight Sun’s 10-per-cent rolling stock option plan.
About Midnight Sun Mining Corp.
Midnight Sun is focused on exploring its flagship Solwezi project, located in Zambia. Situated in the heart of the Zambia-Congo copperbelt, the second-largest copper producing region in the world, the property is vast and highly prospective. The company’s Solwezi project is surrounded by world-class producing copper mines, including Africa’s largest copper mining complex right next door, First Quantum’s Kansanshi mine. Led by an experienced geological team with multiple discoveries and mines around the world to its credit, Midnight Sun intends to find and develop Zambia’s next generational copper deposit.
We seek Safe Harbor.
