Buffalo Potash closes C$14M first tranche of private placement

Buffalo Potash Corporation (TSXV: BUFF) (OTCQB: BLPTF) has closed the first tranche of a non-brokered private placement, raising C$14,013,001.96 in gross proceeds, according to a company statement.

The offering was upsized after the company exercised a 10% increase option, bringing the total maximum size of the offering to C$14,850,000. The first tranche consisted of three components: 4,739,375 Hard Dollar Units at C$0.45 per unit, raising C$2,132,718.75; 6,994,073 flow-through shares at C$0.52 per share, raising C$3,636,917.96; and 14,773,056 Charity Flow-Through Units at C$0.558 per unit, raising C$8,243,365.25.

Each Hard Dollar Unit includes one common share and one-half of one warrant. Each whole warrant is exercisable at C$0.60 per share for 24 months from issuance. The company may accelerate warrant expiry with 30 days' notice if the volume-weighted average trading price reaches at least C$0.90 for 10 consecutive trading days on the TSX Venture Exchange.

Proceeds from the flow-through shares and Charity Flow-Through Units will be directed toward geological work and infrastructure development of the Initial Production Module at the Disley Project in Saskatchewan. Net proceeds from the Hard Dollar Units will be used for general working capital.

The company paid C$474,682.18 in cash finder's fees and issued 1,009,522 finder's warrants in connection with the first tranche. Company insiders participated in the offering, acquiring 60,000 Hard Dollar Units and 96,084 flow-through shares for aggregate proceeds of C$76,963.68.

Buffalo Potash anticipates closing the remaining balance of the offering in a second and final tranche on or before June 30, 2026. The TSX Venture Exchange has granted conditional approval for the offering, and all securities are subject to a four-month-and-one-day statutory hold period.

You May Also Be Interested In

• Raymond James Starts SpyGlass Pharma (SGP) at Outperform
• Popular stocks with increasing option volume: SPCX MU SMCI INTC AMZN NFLX HTZ MSTR NBIS PLTR SNDK CRWV ORCL CSCO
• Increasing unusual call option volume: CLBT STNE RIO INDA HTZ QSI HTZ SJM JACK EMN DLO