Three Valley Copper (TSXV:TVC) announced this morning that it had closed the previously announced bought-deal offering and exercise of the over-allotment option. The financing will help the company advance the Minera Tres Valles copper project in Chile, and fund exploration at the site. Additionally, funds will be used for working capital and general corporate purposes as Three Valley Copper explores, develops, and produces 99.99% copper cathodes at its flagship property.
Initially, the company entered into an agreement with co-lead underwriters and joint bookrunners PI Financial Corp. and Eight Capital for a C$10 million bought deal financing.
Then, shortly after, due to significant investor demand, PI Financial Corp and Eight Capital amended the agreement to increase the size of the deal.
Details of the financing are as follows:
The Company issued a total of 56,681,000 units (the “Units”) on a bought deal basis, at an offering price of C$0.32 per Unit (the “Offering Price”), which included 6,681,000 Units issued pursuant to the exercise of the over-allotment option, and issued 819,000 additional Common Share purchase warrants (each, a “Warrant”) pursuant to the exercise of the over-allotment option at an offering price of C$0.08 per Warrant, for gross proceeds of approximately C$18.2 million. Each Unit consists of one Class A common share (a “Common Share”) in the capital of the Company and one Warrant. Each Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.45 for a period of 30 months following the closing of the Offering.
Source: Three Valley Copper
Michale Staresinic, CEO of Three Valley Copper (TSXV:TVC) commented in a press release: “This new equity capital coupled with the concessions provided by our senior lenders provide a roadmap for the Company to complete its flagship project at MTV, Papomono is on schedule to begin its first caving operations in January 2022 followed by an increasing production profile during 2022 and ultimately reach near production capacity in 2023. In parallel, we continue the strategic review process announced by the Company in October and welcome our new shareholders with the closing of this equity raise, and thank our existing shareholders for their ongoing support.
“With copper prices firmly above US$4 per pound for the majority of 2021, we continue to believe this level of price support for copper will continue in the long-run. The electric vehicle revolution, infrastructure stimulus spending, and world consensus on decarbonization back our strong conviction that our pure-play copper project with 46,000 hectares of underexplored lands will produce strong results for shareholders once we are able to reach production capacity. Our new shareholders see this too and we welcome their support through this Offering.”