StrikePoint closes $190M subscription receipt offering for Nevada gold project

StrikePoint Gold Inc. (TSXV: SKP) (OTCQB: STKXF) has closed a bought deal private placement of subscription receipts through its subsidiary, raising $190 million in gross proceeds, including the full exercise of the underwriter's option.

Canaccord Genuity Corp. acted as sole underwriter for the offering, which comprised 95,000,000 subscription receipts priced at $2.00 each. The proceeds are held in escrow pending satisfaction of conditions related to the company's planned acquisition of the Northumberland Gold Project in Nevada from subsidiaries of Newmont Corporation.

The escrowed funds are set to be released if all conditions are met by Oct. 24, 2026. Upon release, each subscription receipt will convert into one post-consolidation common share of StrikePoint following an amalgamation of subsidiary entities. If conditions are not met by the deadline, proceeds will be returned to holders.

Tembo Capital purchased 20,300,000 subscription receipts in the offering. Upon conversion, Tembo would hold approximately 19.9% of StrikePoint's issued and outstanding shares on a non-diluted basis. Under an investor rights agreement, Tembo will have the right to nominate one board representative and one representative on a newly formed technical committee.

Separately, StrikePoint agreed to sell Tembo a 0.5% net smelter return royalty over the Northumberland project for US$10 million. StrikePoint retains the right to repurchase half of that royalty for US$25 million within five years of the sale or 120 days after the start of commercial production, whichever comes first.

The underwriter is entitled to a cash commission of 6% of gross proceeds, reduced to 3% for sales to investors on the company's president's list, as well as broker warrants to purchase shares equal to 6% of subscription receipts issued, exercisable at $2.00 per share for 24 months following satisfaction of escrow conditions.

Company insiders purchased an aggregate of 137,000 subscription receipts in the offering. The offering remains subject to approval from the TSX Venture Exchange.

You May Also Be Interested In

• Enbridge to buy Tallgrass crude oil assets for $2.55 billion
• LifeStance Health prices secondary offering of 22.25M shares at $12.35
• Centrus Energy launches public offering of stock and warrants