Koryx announces C$10m bought deal financing to advance Haib project
TSX-V-listed Koryx Copper has entered into an agreement with Stifel Nicolaus Canada to act as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters.
Under the terms of the agreement, the underwriters have committed to buy, on a bought deal basis, 9.52-million common shares of the company for C$1.05 a share. This transaction will provide Koryx with aggregate gross proceeds of about C$10-million.
Koryx will use the proceeds to advance technical studies on its 100%-owned advanced-stage Haib copper project, in Namibia, as well as to continue exploration on the property. The funds may also be used for working capital and general corporate purposes.
Koryx has also granted the underwriters an option to buy additional common shares for a period of up to 30 days following the closing date.
The number of additional shares that may be bought under this option is equal to 15% of the number of shares sold in the initial offering. The purchase price for each additional share will be the same as the original issue price. The purpose of this option is to cover overallotments and to provide market stabilisation.
The common shares offered under the transaction will be distributed by way of a short form prospectus to be filed in every province and territory in Canada, with the exception of Québec.
In the US, the shares will be offered on a private placement basis. The shares may also be offered in jurisdictions outside Canada, provided that no prospectus, registration or similar documentation is required in those jurisdictions.
The offering is expected to close on July 30 subject to several conditions, including the receipt of all required regulatory approvals and the conditional approval of the TSX-V.
As compensation for their services, the underwriters will receive a cash commission equal to up to 6% of the gross proceeds of the offering.
In addition, the underwriters will receive compensation warrants equal to up to 3% of the number of common shares sold under the offering. Each compensation warrant will entitle the holder to acquire one common share of Koryx at the issue price.
These warrants will be valid for 24 months from their date of issuance.
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