Avanti Gold closes C$51.75M bought deal for Misisi drilling

Avanti Gold Corp. CNSXAGC OTCMKTSAVTGF said Wednesday it closed a C$51.75 million bought deal private placement at C$0.50 per unit. The 103.5 million new shares dilute existing stakes while helping to fund 42,000 metres of drilling at the Misisi gold project and work on its maiden preliminary economic assessment.

Avanti shares stood at C$0.44 on the Canadian Securities Exchange at 9:30 a.m. EDT Wednesday, according to the CNSXAGC quote. The closing release followed at 9:46 a.m. EDT, so the quote does not show the market's response; it put the C$0.50 placement price above the preannouncement trade.

The deal included 13.5 million units issued through the full exercise of an option on top of the 90 million units previously underwritten. SCP Resource Finance was the sole bookrunner and lead underwriter of a syndicate that also included BMO Nesbitt Burns and Haywood Securities.

Each unit contains one common share and half a warrant, with each whole warrant exercisable at C$0.65 for 36 months from the Sept. 23 closing. The 51.75 million investor warrants could create that many additional shares if exercised, beyond the common shares already issued.

“The completion of this financing places Avanti in a strong financial position to execute our planned 42,000-metre exploration program at the Misisi Project,” Avanti chief executive Mohamed Cisse said in the release.

The underwriters received a cash fee equal to six per cent of gross proceeds and 6.21 million broker warrants. Each broker warrant can buy a share for C$0.50 during the same 36-month period, creating another potential source of dilution; the cash fee reduces what remains to spend on the project. Avanti did not separate the amount assigned to drilling from the amount earmarked for the study, administration and working capital.

The financing was first announced at C$35 million on Aug. 30 and increased to C$45 million on Aug. 31. Exercising the option added C$6.75 million at Wednesday's closing, taking gross proceeds to C$51.75 million before underwriting fees and other costs.

Misisi is in the Democratic Republic of the Congo, where Avanti is drilling the Akyanga deposit and other targets across its permit area. Its Aug. 31 release put the Akyanga inferred resource at 3.11 million ounces of gold, based on 40.8 million tonnes grading 2.37 grams per tonne.

Avanti's drill program is meant to expand and upgrade Akyanga's resource before the maiden economic assessment, which the company expects to publish in 2027.

In its Sept. 23 release, Avanti said six rigs were dedicated to the Misisi program. The company's Aug. 31 exploration plan calls for drilling beyond the existing resource footprint and work to upgrade confidence in Akyanga's estimate before the economic assessment.

Avanti expects more Misisi exploration results before the end of 2026.