Group Eleven Resources (ZNG.V) has confirmed it has increased the size of its bought deal financing to just over 13.3M shares priced at C$0.90 per share for total proceeds of C$12M (C$11.5M net after taking the payment of finders fees into account). This includes the over-allotment option exercised by the underwriters. Glencore did not exercise its participation right, which means Glencore sees its stake being diluted to approximately 13%.
The cash will be used to fund the company’s continuous drill program at Ballywire and Stonepark in Ireland, where its exploration efforts recently gained momentum after some important high-grade hits. The drill program will be expanded from 17,000 meters to 51,500 meters at Ballywire, while the recently closed offering will also allow the company to increase the size of its Stonepark drill program, which will be expanded from 3,000 meters to approximately 15,500 meters.
Disclosure: The author has no position in Group Eleven Resources. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
