1911 Gold Upsizes Bought Deal to $31M for True North Project

1911 Gold Corp. upsized its bought deal financing to $31 million, the company said Tuesday. The offering, led by Haywood Securities with BMO Capital Markets and Roth Canada, will fund exploration and development at the True North gold project in Manitoba.

The structure is layered. The underwriters will buy 7.8 million units at $0.64 each and a combination of flow-through units at prices from $0.752 to $1.011. Each unit, regardless of type, includes one common share and half a warrant. Each whole warrant lets the holder buy one share at $1.00 for 24 months from closing.

The company also granted the underwriters a 15% over-allotment option on any combination of the securities.

The $1.00 warrant strike sits 56% above the $0.64 unit price. Warrant holders get a call on the stock if it rallies within two years. For existing shareholders, the offering brings immediate dilution. The exact share count depends on the final mix of unit types. The gross proceeds of $31 million could add 30 million to 48 million shares to the outstanding float. The company had roughly 100 million shares outstanding before the deal, based on recent filings.

The flow-through structure offers tax benefits to investors. Canadian development expense units and Canadian exploration expense units allow the company to renounce qualifying expenditures to subscribers, who can deduct them against income.