Red Eagle Mining Corporation has closed its previously announced bought deal financing of 20 million common shares. The price came in at $0.75 USD per common share for gross proceeds of $15 million USD.
The Canadian mining company plans to use the bulk of the funds to further exploration efforts of its Santa Rosa gold project in Antioquia, Colombia. Some of the proceeds will also go towards working capital purposes.
The shared were issued by in a public offering in all every Canadian province except for Quebec. They were underwritten by a syndicate of underwriters led by the BMO Capital Markets and including National Bank Financial Inc. The underwriters also exercised an over-allotment option in full to purchase three million shares for $2.25 million USD.
According to the Red Eagle Mining, the company fully owns the Santa Rosa gold project, where it has begun production from its San Ramon gold mine. The firm also controls CB Gold Inc., which fully owns what are called the California Gold Project, Vetas Gold Project, and Santa Ana Silver Project and “is actively consolidating additional high-grade precious metal deposits in Colombia.”
Photo Credit: Red Eagle Mining Corporation