For many exploration and development companies, raising money without a deep discount can be a real chore. On Monday, Maya Gold & Silver (TSX-V. MYA) came across like raising capital for its Zgounder Silver mine in Morocco was easy as pie.
Five days earlier, the Montreal-based company said it was aiming to raise $25.0 million through a non-brokered private placement by issuing about 7.58 million shares at $3.30 each.
Maya said the stock would be subject to a two-year holding period and there weren't any warrants being attached either, nor would it pay any finder's fee in connection with the placement. Shares closed at $2.50 the day before the announcement of the capital raise.
This morning, Maya Gold said that not only did it complete the private placement, but it was over-subscribed as well at a 32% premium to the price of shares before the round was disclosed. The company raised $28.4 million, ultimately issuing 8.6 million shares at $3.30 each.
With its coffers full, Maya Gold plans to continue developing and expanding its Moroccan assets, including building a second mine that will incorporate new infrastructure, including a new processing plant that will ramp capacity to 2,000 tonnes per day by 2021 and preparation for an open pit.
Shares of MYA have eked ahead on the news of the closing of the funding, gaining 1.4%, or four cents, to $2.85 at noon Toronto time.
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