Canadian zinc mining company Adventus Zinc Corp (TSX-V: ADZN) has launched a bought-deal private placement offering to raise as much as $11.5 million. It is expected that the company’s strategic investors, Canadian mining royalty firm Altius Minerals Corp, U.K. private equity firm Greenstone Resources and U.S. private equity firm Resource Capital Funds (RCF), will participate in the deal. The three shareholders provided Adventus with $8 million in seed financing last year. Toronto-based Adventus said it will use the offering’s proceeds to fund the Curipamba polymetallic project in Ecuador and for other priorities.
Adventus Zinc Announces C$10 Million Bought Deal Private Placement
TORONTO, ONTARIO–(Marketwired – Dec. 4, 2017) –
Adventus Zinc Corporation (“Adventus Zinc” or the “Company”) (TSX VENTURE:ADZN) has today entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc. and Haywood Securities Inc. (the “Underwriters”) pursuant to which the Underwriters have agreed to purchase on a “bought deal” private placement basis 11,363,637 common shares of the Company (the “Shares”) at a price of C$0.88 per Share (the “Offering Price”), representing total gross proceeds of C$10,000,000.56 (the “Offering”). It is anticipated that Adventus Zinc’s strategic shareholders including Altius Minerals Corporation, Greenstone Resources LP and Resource Capital Funds will participate in the Offering. Closing is expected on or about December 21, 2017 and is subject to regulatory approval including that of the TSX Venture Exchange and the securities regulatory authorities.
In addition, the Company has granted the Underwriters an option (the “Underwriters’ Option”), exercisable in whole or in part, on the closing date, to purchase up to 1,704,546 additional Shares at the Offering Price. In the event that the Underwriters’ Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$11,500,001.
The net proceeds of the Offering will be used by the Company to fund the Curipamba Project in Ecuador and its Ecuadorian Exploration Alliance, general and administrative expenses, corporate activities as well as working capital for the Company.
The Shares will be offered for sale on a private placement basis pursuant to applicable exemptions from the prospectus and registration requirements in the following jurisdictions in all of the Provinces of Canada and elsewhere.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Shares in any state in which such offer, solicitation or sale would be unlawful. The Shares have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
About Adventus Zinc
Adventus Zinc is a unique company focused on zinc exploration and project development globally. Its strategic shareholders include Altius Minerals Corporation, Greenstone Resources LP and Resource Capital Funds, as well as other highly respected investors in the mining business. Adventus Zinc currently has large prospective land packages in both Ireland and Newfoundland and Labrador, Canada, and is earning a 75% ownership interest in the Curipamba polymetallic project in Ecuador. In addition, Adventus Zinc has a country-wide generative exploration alliance with its partner in Ecuador. The Company is based in Toronto, Canada, and is listed on the TSX-V under the symbol ADZN.
Chief Executive Officer
Photo courtesy of Adventus Zinc Corp