Probe Metals Completes $17 Million Bought Deal Private Placement
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TORONTO, Dec. 10, 2019 (GLOBE NEWSWIRE) -- Probe Metals Inc. (TSX-V: PRB) (“Probe” or the “Company”) is pleased to announce that it has closed its previously announced bought deal private placement for aggregate gross proceeds of $17,000,000 (the “Offering”).
The Offering was comprised of 7,697,500 flow through units of the Company (“FT Units”) at a price of C$1.80 per FT Unit for gross flow-through proceeds of $13,855,500 and 3,144,500 non flow-through units of the Company (“Hard Dollar Units”) at a price of C$1.00 per Hard Dollar Unit for gross non flow-through proceeds of $3,144,500. Each FT Unit and each Hard Dollar Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company for 2 years from the closing of the Offering at a price of C$1.30.
David Palmer, President and CEO of Probe, states: “We are very pleased with the equity financing, and particularly the strong show of support for the oversubscribed Offering. By utilizing the large 80% flow-through premium for Quebec projects, we can now commence an aggressive 2020 exploration program with less dilution to our shareholders. After a very successful year for the Val-d’Or East project we see continued upside for 2020. During 2019 we more than doubled our gold resources and also crossed a pivotal threshold in terms of size as we move the project towards potential development. Most importantly, we have demonstrated the potential of Val-d’Or East to host world class gold deposits. In 2020 we will be continuing our aggressive exploration and expansion programs on the known resource zones, all of which are open along strike and at depth. Through exploration we have now identified over 10 zones of mineralization, which represent less than 5% of the area of our current landholdings. Owing to the success of the 2019 resource drilling program, we will be expanding the scope of our exploration to encompass more of the regional property. This will include areas proximal to the resources as well as other trends that have not received previous exploration work. For our proximal exploration we have been utilizing modern geophysical techniques to identify previously undetected targets and potential parallel gold structures to the Pascalis and Courvan trends. These two trends are responsible for hosting more than 80% of our current gold resources and the growth potential of this new proximal exploration could add significant ounces. To complement the new expanded strategy, we will also be increasing our regional program to include other areas that have been highlighted by our new geological model. Although markets can be unpredictable, the best path for the Company is to continue adding value through focussed exploration. With the closing of the Offering, we have now approximately $35 million in treasury to complete these exploration initiatives. We are looking forward to 2020 and thank all of our shareholders for their support, and patience, as we build one of the leading gold projects in Canada.”