Troilus Gold (TSX: TLG) has upsized its previously announced bought deal financing to $42.5 million from $35 million. The net proceeds of the offering will be used for engineering and feasibility level studies at the past-producing Troilus mine 175 km from Chibougamau, Que.
The underwriters, led by Cormark Securities, has agreed to purchase 7.9 units of the company at a price of $1.10 per unit, 6.2 million traditional flow-through units at $1.26 each, 13.5 million national flow-through units at a price of $1.48 each, and $3.2 million Quebec flow-through units at $1.89 each. The underwriters have also been granted a 15% over-allotment for a period of 30 days after closing, which is expected on June 30.
Each unit consist of one common share of Troilus and one-half of one share purchase warrant across all three types of flow-through shares. Each full warrant entitles the holder to one common share priced at $1.50 for a period of 24 months after closing.
The Troilus gold mine produced over 2 million oz. of gold and about 70,000 tonnes of copper when it was an open pit operation from 1996 to 2010. Troilus Gold acquired it in December 2017 and has plans to reopen. This time operation would see first open pit and then underground production. A positive pre-feasibility economic assessment was completed in August 2020. (See CMJ’s earlier article.)