Power Metallic Mines (PNPN.V) is launching a "best efforts" private placement of up to 20 million of its common shares at C$1.25 per share, for gross proceeds of up to C$25 million, the company said late on Thursday.
The company has entered into an agreement with Red Cloud Securities, under which Red Cloud will act as lead agent and sole bookrunner on behalf of a syndicate of agents for the offering.
The agents have been granted an option, exercisable in full or in part up to 48 hours before the offering closes, to sell up to an additional 2.4 million shares at the offering price for up to an additional $3 million in gross proceeds.
Net proceeds will be used to advance Power Metallic's flagship NISK project in Quebec and the Jabul Baudan exploration license in Saudi Arabia, as well as for general working capital and corporate purposes.
The offering is scheduled to close on June 10, subject to certain conditions including TSX Venture Exchange approval.