Liberty Gold Corp. (LGD:TSX) recently closed its bought-deal financing, which resulted in about CA$11.6 million being added to the company coffers. Liberty will use the proceeds for working capital and for exploration and development work at its three flagship projects in the western U.S.: Goldstrike in Utah, Black Pine in Idaho and Kinsley in Nevada, according to the news release.
As for the financing specifics, a group of underwriters purchased, on a bought-deal basis, 25,125,000 units of Liberty Gold at a price of CA$0.40 apiece, which yielded CA$10,050,000 for Liberty. The group also exercised the over-allotment option to the extent possible, buying another 3,768,750 of Liberty units, which generated another CA$1,507,500 for the company.
Cumulatively, 15,893,750 units (or about 15.9 million) were purchased for a total of CA$11,557,500, or roughly CA$11.6 million.
Each unit consisted of one common Liberty share and one common share purchase warrant. One warrant allows for one common share to be bought for CA$0.60 any time before Oct. 2, 2021.
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