Founders Metals Closes $5 Million Bought Deal Financing and Fully Exercised Over- Allotment Option
Founders Metals Closes $5 Million Bought
Deal Financing and Fully Exercised Over-
Allotment Option
Vancouver, British Columbia--(Newsfile Corp. - November 28, 2023) - Founders Metals Inc. (TSXV:
FDR) (FSE: 9DL0) ("
Founders
" or the "
Company
") is pleased to announce the closing of its
previously-announced bought deal private placement offering of 7,187,500 common shares of the
Company (the "
Offered Shares
") at a price of $0.80 per Offered Share for aggregate gross proceeds
of $5,750,000 (the "
Offering
"), including the full exercise of the 15% over-allotment option granted to the
Underwriters (as defined herein) in connection with the Offering. The Offering was led by BMO Nesbitt
Burns Inc., as lead underwriter, on behalf of a syndicate of underwriters, including Paradigm Capital Inc.
and Clarus Securities Inc. (collectively, the "
Underwriters
").
Colin Padget, Founders' President & CEO, stated, "We are very pleased to successfully close this
C$5.75 million financing. Founders is now in an excellent position to expand its exploration and drilling
programs at Antino, with up to 30,000 m planned for 2024."
The Company intends to use the net proceeds of the Offering for ongoing exploration activities on the
Antino Gold Project and for general corporate purposes.
In consideration for the services provided to the Company by the Underwriters in connection with the
Offering, the Company paid to the Underwriters a cash fee of $345,000 equal to 6.0% of the aggregate
gross proceeds of the Offered Shares sold under the Offering. The Company also paid a cash
commission finder's fee in the amount of $3,000 to Richardson Wealth Limited.
The securities issued under the Offering will be subject to a hold period under applicable securities laws
in Canada expiring four months and one day after the closing of the Offering. The Offering is subject to
final acceptance of the TSX Venture Exchange. None of the Offered Shares have been registered under
the
U.S. 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. 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
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Founders Metals Inc.
Founders Metals is a Canadian exploration company operating in North and South America. The
Company is focused on acquiring and advancing gold projects in the South American Guiana Shield. Its
flagship project is the 20,000-ha Antino Gold Project in Suriname. The fully permitted Antino is the most
advanced gold exploration project in Suriname, with historical surface/alluvial gold mining production of
over 500,000 gold ounces to date
1
.
1
2022 Technical Report - Antino Project; Suriname, South America. K. Raffle, BSc, P. Geo & Rock Lefrançois, BSc, P.Geo.
ON BEHALF OF THE BOARD OF DIRECTORS,
Per:
"
Colin Padget
"
Colin Padget
President, Chief Executive Officer, and Director
Founders Metals Contact Information
Dave Burwell, VP, Corporate Development
Tel: 403 410 7907 |
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, without limitation, statements regarding the
use of proceeds from the Company's recently completed financings and the future or prospects of the
Company. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect ", "is expected ", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking statements are necessarily based upon a
number of assumptions that, while considered reasonable by management, are inherently subject to
business, market, and economic risks, uncertainties, and contingencies that may cause actual results,
performance, or achievements to be materially different from those expressed or implied by forward-
looking statements. Although the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking information, other factors may
cause results not to be as anticipated, estimated, or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking
information. Other factors which could materially affect such forward-looking information are described in
the risk factors in the Company's most recent annual management discussion and analysis. The
Company does not undertake to update any forward-looking information, except in accordance with
applicable securities laws.
All material information on Founders Metals can be found at
www.sedarplus.ca
.
Not for distribution to U.S. news wire services or dissemination in the United States.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/188912