Antimony Resources proposes C$3M placement to fund Bald Hill
Each C$0.30 unit would include a common share and half a warrant, with closing targeted for Oct. 21.
Theo Marchetti
Antimony Resources Corp. CNSXATMY OTCMKTSATMYF FRAK8J0, a Canadian Securities Exchange-listed explorer, proposed on Thursday a non-brokered placement of up to C$3 million for its Bald Hill antimony project. The Oct. 15 offer would issue up to 10 million units at C$0.30 each.
Each unit would contain a common share and half a share purchase warrant under the Oct. 15 terms. Each whole warrant would allow its holder to buy another share at C$0.50 for two years after completion. Closing is targeted for Oct. 21, subject to necessary approvals.
Shares last traded at C$0.31 on the Canadian Securities Exchange at 3:59 p.m. EDT on Oct. 14, according to exchange data. The proposed unit price is about 3.2 per cent below that price. That trading snapshot predates the financing announcement and does not establish a reaction to it.
The CSE listed 122,291,281 issued shares when checked on Oct. 15. Full subscription would increase that count by about 8.2 per cent, with the new shares representing about 7.6 per cent of the enlarged total. Those calculations exclude warrant exercises and any other share issuance.
Placement Follows Flow-Through Financing
The Oct. 15 terms would also create up to five million warrants. Full exercise would bring in another C$2.5 million, calculated from the proposed warrant count and exercise price. That potential cash depends on holders exercising their warrants and is separate from the placement's maximum gross proceeds.
"The Company intends to use the net proceeds of the Offering to fund exploration and development activities on its Bald Hill Antimony Project, as well as for general working capital purposes," the company said.
Bald Hill is in New Brunswick. The financing release does not divide the proposed spending between exploration, development and working capital, or identify a particular drilling budget. It says finder's fees may be payable under CSE policies, so the maximum gross raise is not a net cash figure.
Thursday's proposal follows a separate C$5 million flow-through financing that the company reported closed in an Oct. 5 release listed in its news archive. The new offer also follows the Bald Hill drilling results covered by Mugglehead.
Read more: Antimony Resources reports 21.45 per cent antimony over 1.10m at Bald Hill
Elsewhere in the antimony supply chain, United States Antimony Corporation NYSEUAMY describes operations that include smelters in Montana and Mexico. Antimony Resources describes itself as an exploration and development company focused exclusively on antimony.
The proposed placement uses the listed issuer financing exemption. The release says securities issued under that exemption would have no statutory hold period under applicable Canadian securities laws, and the offering is open to Canadian purchasers outside Quebec.
The next financing milestone is the targeted Oct. 21 close. Completion would establish how much of the proposed C$3 million is raised and how many units are issued.
