Benchmark Metals (TSXV: BNCH) announced Thursday that it has entered into an agreement with Sprott Capital Partners to act as lead agent on its own behalf and, if applicable, on behalf of a syndicate of agents in connection with a private placement to raise up to C$7.5 million.
The offering will consist of a combination of up to 18.3 million units at C$0.30 per unit, to raise gross proceeds of up to $5.5 million, and up to 5 million flow-through shares at C$0.40 to raise an additional $2 million.
Sprott will about 14% of Benchmark’s issued and outstanding common shares
Each unit
will consist of one common share of the company and one-half of a common share
purchase warrant. Each whole warrant will be exercisable to acquire one additional
common share at an exercise price of C$0.40 per Common Share for a period of
two years from the date of closing of the offering.
Eric Sprott will purchase 13.3 million units of the offering, which will result in Sprott holding about 14% of Benchmark’s issued and outstanding common shares.
The Canadian billionaire investor – also a pioneer in the
gold-backed ETF industry – has splashed over C$145 million on gold,
silver, and nickel explorers since May, mostly on Canada-domiciled
companies.
Upon closing the maximum offering, if Sprott were
to exercise all of his warrants, he would hold a 19.98% ownership position in
Benchmark on a partially diluted basis, the company said in a media statement.
The net proceeds from the unit offering will be used to finance further exploration expenditures on the Lawyers Property gold property in British Columbia, part of the prolific ‘Golden Horseshoe’ and to provide the company with working capital.
At market close Thursday, Benchmark Metals’ was up 1.2%.
The company has a C$20.8 million market capitalization.
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