The Board of Directors of
Background
The Company has decided to raise a total of
With the financing, the Company intends to fund another 1 000-2 500M of drilling at the flagship project Kopsa aiming for a total target of 1 Moz of AuEq. With financing from the Directed Issues, the Company will be funded through 2024.
Henrik Löfberg,
I am thankful for the support from our existing shareholders and from the new investors who are participating in this transaction. I am also happy that so many see the value in our project and want to be part of the journey ahead. We are now looking forward to strengthen the foundation for a PEA and a future standalone mine at Kopsa.
Use of proceeds and motive
Through the Directed Issues, the Company will receive approx.
- Drilling at the
Kopsa Project - Assays of drilling result at
Kopsa Project - Working capital to support drilling and exploration activities
- Marketing, G&A, tenement fees
Reasons for deviation from existing shareholders’ preferential rights
The Company's Board of Directors has made an overall assessment and carefully considered the possibility of raising capital through a rights issue. The conclusion of this assessment is that the Directed Issues is objectively the best alternative for the Company and its shareholders. The reasons for that, and for deviating from the shareholders preferential rights, are (i) that a rights issue would take a significantly longer time to complete and increase the risk for an adverse effect on the share price, especially in light of the current market volatility and the challenging market conditions for smaller companies, (ii) to diversify and strengthen the Company's shareholder base with institutional and new private investors, (iii) to carry out the Directed Issues can be made at a significantly lower cost and with less complexity than a rights issue and because of current market conditions, the board of directors has assessed that a rights issue would also require external underwriting from guarantors that would entail additional significant costs. Considering the above, the board of directors has made the assessment that the Directed Issues with deviation from the shareholders' preferential right is the most favorable alternative for
Prior to the proposal on the Directed Issues, the board of directors has put a lot of emphasis on the subscription price to ensure it is carried out at market terms. The subscription price corresponds to a discount of approximately 24,2 percent in relation to the VWAP 10 days before the board’s decision to carry out the Directed Issues and has been determined through an accelerated bookbuilding procedure. Additionally, transactions within the same segment as the Company that have carried out transactions of similar structure have been executed at similar terms which strengthens the board’s assessment of the subscription price being in line with market terms.
Terms for the Directed Issues
The board of directors has today proposed two directed issues of totally 1 925 137 shares. Transaction 1 consists of 1 738 305 shares and Transaction 2 consists of 186 832 shares. The Directed Issues will initially provide the Company with approx.
The Directed Issues will increase the share capital by
Advisors
In connection with the Directed Issues,
For more information about the Directed Issues, please contact:
Phone: +46 (0)40 615 14 10
E-mail: cf@sedermera.se
www.sedermera.se
For further information about the Company, please contact:
Henrik Löfberg
E-mail: ir@northgoldab.com
Website: www.northgoldab.com
Certified Adviser
Phone: +46 8-604 22 55
E-mail: info@augment.se
About
Important information
Publication or distribution of this press release may in some jurisdictions be subject to statutory and legal restrictions and persons in those jurisdictions where this press release has been published or distributed should inform themselves about and observe such restrictions. The information in this press release does not constitute an offer to acquire, subscribe or otherwise trade in shares or other securities in
This press release does not constitute an offer to acquire securities in
Forward-looking statements
This announcement may contain certain forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intends”, “estimate”, “will”, “may”, “continue”, “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm or release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.
The information, estimates, and forward-looking statements contained in this announcement are valid only as of the date of this announcement and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or publish any adjustments regarding any forward-looking statements to reflect events that occur or circumstances that arise regarding the content of this notice.
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