Endurance Gold (EDG.V) has closed an oversubscribed private placement, raising C$3.06M in the process. The financing was originally announced to be just C$2.5M but was upsized later on and that’s a nice surprise considering the placement was priced above the market price when it was announced on January 31st. The share price closed at C$0.345 on the previous trading day so pricing a financing at a 15% premium and subsequently being able to upsizing it and closing it within two weeks is a very respectable achievement.
About half of the offering was taken up by Evanachan Ltd., a private company controlled by Rob McEwen while just under 1 million units were acquired by members of Endurance’s management team and board of directors. This means that in excess of 60% of the placement was placed with just a handful of people which is an excellent vote of confidence.
While the exploration results at the flagship Reliance project have been very encouraging with several high-grade gold intervals close to surface and over good widths, it still is remarkable to see a company market a placement at a premium to the share price and close it within weeks. Another feather in CEO Boyd’s cap.
Disclosure: The author has a long position in Endurance Gold. Please read our disclaimer.
