By Deborah Bacal
Proactive Investors
Klondex Mines (TSE:KDX), which transitioned to Nevada’s newest gold producer from an explorer in just one year, has announced it is raising C$14 million via a bought deal financing, with the new funds to be used for accelerated exploration and development at its Midas and Fire Creek properties.
The gold producer, in a statement released late Thursday, said a syndicate of underwriters led by GMP Securities has agreed to purchase 7.0 million common shares of Klondex at a price of C$2.00 apiece. Shares of Klondex closed at C$2.12 on Thursday.
The underwriters also have the option, at any time up to 30 days after closing, to purchase up to an additional 1.05 million shares to cover their over-allotment position, potentially bumping up the proceeds to C$16.1 million.