Prize Mining (PRZ.V) has announced it has appointed a syndicate to distribute C$4M worth of the company’s current financing at C$0.15. To accommodate this demand, the company is cutting the size of its non-brokered financing from C$8M to C$6.75M, which will result in a total raise of C$10.75M by issuing just over 71 million units. A first tranche of the non-brokered placement (for total proceeds of C$6.5M) has already been closed.

As mentioned before, each unit will consist of one common share and half a purchase warrant. Each full warrant will allow the warrant holder to acquire an additional share of Prize Mining at C$0.25 for a period of 12 months. The acceleration clause could allow the company to trigger the exercise of these warrants should the share price of Prize trade above C$0.45 per share for at  least 30 consecutive trading days.


Surprisingly, a large part of the proceeds (C$5.5M) will go towards marketing, advertising and corporate development as CEO Mike McPhie (ex-Curis Resources, ex-JDS Gold) tries to tap into new investor pools. A part of the proceeds will also be used for an initial 2,000 meter drill program to advance the Manto Negro copper project in Mexico.

We expect the financing to be closed soon, which will allow Prize to hit the ground running in Mexico. A small drill program is already underway in Canada where the Toughnut gold-silver project is being drilled, but we would like to emphasize the company’s main focus going forward will be on its Mexican copper project.

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The author has a long position in Prize Mining. Prize is a sponsor of the website. Please read the disclaimer

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