13:54:19 EST Fri 27 Jan 2023
Enter Symbol
or Name

Prime Mining Corp
Symbol PRYM
Shares Issued 112,800,705
Close 2022-12-01 C$ 1.58
Recent Sedar Documents

Prime Mining increases bought deal to $18.3-million

2022-12-02 12:05 ET - News Release

Mr. Daniel Kunz reports


In connection with Prime Mining Corp.'s previously announced bought deal private placement, the company and Desjardins Capital Markets, acting as sole bookrunner and co-lead, on behalf of a syndicate of underwriters co-led by Desjardins Capital Markets and TD Securities Inc., have agreed to increase the size of the previously announced offering from $16.5-million to $18.3-million. Pursuant to the amended terms, the underwriters will offer for sale, on a bought deal basis, 12.2 million units of the company at a price of $1.50 per unit for aggregate gross proceeds to Prime of $18.3-million. Each unit will consist of one common share in the company and one common share purchase warrant. Each warrant shall be exercisable for one common share at an exercise price of $2 for a period of 36 months following the closing date (as defined below). If, following the closing date, the volume-weighted average trading price of the shares on the TSX Venture Exchange for any 10 consecutive trading days equals or exceeds $2.50, the company may, upon providing written notice to the holders of warrants, accelerate the expiry date of the warrants to the date that is 20 days following the date of such written notice.

The underwriters will have the option, exercisable at any time prior to 48 hours before the closing date, to acquire up to an additional 15 per cent of the number of units purchased under the offering. The underwriters are to be paid a cash commission equal to 6 per cent of the gross proceeds of the offering, except that a commission of 3 per cent of the gross proceeds will be paid from the sale of units to certain purchasers designated by the company to account for a maximum of $3-million of the gross proceeds from the offering.

The net proceeds from the offering will be used by the company for exploration and development of the company's Los Reyes gold-silver project and for general corporate purposes. Prime has also been informed that Pierre Lassonde intends to participate in the offering.

The offering is expected to close on or about Dec. 22, 2022, and is subject to certain conditions including, but not limited to, regulatory approvals, including conditional listing approval of the TSX-V with respect to the common shares (including the common shares underlying the warrants).

The units will be offered for sale on a private placement basis in all of the provinces of Canada pursuant to applicable exemptions from the prospectus requirements of Canadian securities laws. The units may also be sold in such jurisdictions outside of Canada as may be agreed upon by the underwriters and the company, in each case in accordance with applicable laws. Pursuant to applicable Canadian securities laws, all securities issued and issuable in connection with the offering will be subject to a four-month hold period from the closing date of the offering.

About the Los Reyes gold and silver project

Los Reyes is a rapidly evolving high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa state, Mexico. Historic operating results indicate that an estimated one million ounces of gold and 60 million ounces of silver were recovered from five separate operations at Los Reyes between 1770 and 1990. Prior to Prime's acquisition, recent operators of Los Reyes had spent approximately $20-million (U.S.) on exploration, engineering and prefeasibility studies. The project remains underexplored and holds potential for additional discovery and resource expansion.

Since acquiring Los Reyes in 2019, Prime has spent approximately $30-million (U.S.) on direct exploration activities and has completed two phases of comprehensive drilling totalling over 100,000 metres. Results to date suggest the three known main deposit areas, Guadalupe, Central and Z-T, are larger than previously reported. Potential also exists for new discoveries outside of the currently defined resource areas.

About Prime Mining Corp.

Prime is managed by an ideal mix of successful mining executives, strong capital markets personnel and experienced local operators all focused on unlocking the full potential of the Los Reyes project. The company has a well-planned capital structure with significant management team and insider ownership.

We seek Safe Harbor.

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