Euro Sun Mining Announces the Filing and Receipt of the Final Prospectus Relating to the Previously Announced Bought Deal Pub...
June 02 2020 - 4:40PM
Euro Sun Mining Inc. (
TSX: ESM)
(“
Euro Sun” or the “
Company”) is
pleased to announce that it has filed, and obtained a receipt for,
a short form (final) prospectus today with the securities
regulatory authorities in each of the provinces of Canada, except
Quebec, in connection with its previously announced offering
whereby Sprott Capital Partners LP on its own behalf and, if
applicable, on behalf of a syndicate of underwriters (together, the
“
Underwriter”) has agreed to purchase, on a bought
deal basis, 51,282,052 units of the Company (the
“
Units”) at a price of C$0.39 per Unit (the
“
Issue Price”), for gross proceeds of
approximately C$20,000,000 (the “
Offering”).
Each Unit will be comprised of one (1) common
share in the capital of the Company (each, a “Common
Share”) and one half of one Common Share purchase warrant
entitling the holder to purchase one Common 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 has granted to the Underwriter the
option to purchase up to that number of additional Units equal to
15% of the Offering size at the Issue Price for market
stabilization purposes and to cover over-allotments (the
“Over-Allotment Option”). 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 the 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
applicable securities regulatory authorities.
On the Closing Date, the Company shall pay to
the Underwriter a cash commission of 7% of the gross proceeds
raised under the Offering (including in connection with the
exercise of the Over-Allotment Option) and shall issue warrants of
the Company to the Underwriter, exercisable for a period of 24
months following the Closing Date, to acquire that number of Common
Shares 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.
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.
For further information about Euro Sun Mining,
or the contents of this press release, please contact Investor
Relations at info@eurosunmining.com
Caution regarding forward-looking
information:
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, without
limitation, statements regarding the Offering, the Over-Allotment
Option, the anticipated Closing Date and the use of proceeds of the
Offering. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including risks
inherent in the mining industry and risks described in the public
disclosure of the Company which is available under the profile of
the Company on SEDAR at www.sedar.com and on the Company's website
at www.eurosunmining.com. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
The TSX does not accept responsibility for the
adequacy or accuracy of this news release.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy nor shall there be any
sale of any of the securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful, including any of the
securities in the United States of America. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the “1933 Act”) or any state securities
laws and may not be offered or sold within the United States or to,
or for account or benefit of, U.S. Persons (as defined in
Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities laws, or an exemption from such
registration requirements is available.
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