Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
O3 Mining has announced that it has entered into an agreement with a syndicate of underwriters, co-led by Cormark Securities, Sprott Capital Partners and Canaccord Genuity, to raise C$35 million (upsized from C$30 million) for exploration work at its projects in Quebec, as well as for working capital and corporate uses.
The bought deal private placement offering includes 4.7 million flow-through units, priced at C$4.3 each, as well as 6.4 million regular units, priced at C$2.35 a unit, for total gross proceeds of C$35 million.
O3 Mining, part of the Osisko group of companies, wholly owns 4,350 sq. km of ground in Quebec and a further 250 sq. km in Ontario
Each flow-through unit consists of one flow-through share and half of a warrant; each regular unit is made up of a share and half of a warrant. The warrants are exercisable at C$3.25 for a 24-month period following closing, which is expected around Jun. 18.
The underwriters also have the option to sell up to an additional 638,310 units up to 48 hours prior to closing. O3 may also issue up to C$2 million worth of units to pre-determined buyers of the stock.
Gross proceeds from the flow-through portion are intended for eligible exploration expenses at the company’s projects in Quebec; proceeds from the sale of regular units are intended for working capital and corporate expenses.
O3 Mining, part of the Osisko group of companies, wholly owns 4,350 sq. km of ground in Quebec and a further 250 sq. km in Ontario – this includes 610 sq. km in Val d’Or; it controls over 50 km of the Cadillac-Larder lake fault.
The company’s assets in Quebec include the Malartic, Alpha and East Cadillac properties, where it is planning to drill a total of 50,000 metres this year.
(This article first appeared in the Canadian Mining Journal)
