Euro Sun Mining Announces C$12 Million Bought Deal Public Offering of Units

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TORONTO, May 15, 2020 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the “Company”) announces that it has entered into an agreement with Sprott Capital Partners LP on its own behalf and, if applicable, of a syndicate of underwriters (together, the “Underwriter”) pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 30,769,231 units of the Company (the “Units”) at a price of C$0.39 per Unit (the “Issue Price”) for gross proceeds of approximately C$12 million (the “Offering”). Each Unit is comprised of one (1) common share in the capital of the Company (each, a “Common Shares”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”) entitling the holder to purchase one Common Share (each, a “Warrant Share”) at C$0.55 at any time on or before the date which is thirty-six months after the Closing Date (as defined below).

The Company will grant to the Underwriter an option to cover over-allotments and for market stabilization purposes (the “Over-Allotment Option”) to purchase up to that number of additional Units equal to 15% of the Offering size at the Issue Price. The Over-Allotment Option will be exercisable in whole or in part, at any time and from time to time, for a period of 30 days from and including the Closing Date. If the Over-Allotment Option is exercised in full, an additional C$1,800,000 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be approximately C$13,800,000.

The Company intends to use the net proceeds of the Offering for the exploration and development of the Company’s projects, including permitting and feasibility study, and for working capital purposes.

The Offering is scheduled to close on or about June 5, 2020, or such other date as may be agreed to between the Company and the Underwriter (the “Closing Date”) and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (the “TSX”) and the applicable securities regulatory authorities.

On the Closing Date, the Company shall pay to the Underwriters a cash commission of 7% of the gross proceeds raised under the Offering (including in connection with the exercise of the Over-Allotment Option). In addition, on the Closing Date, the Company shall issue to the Underwriters warrants of the Company (the “Broker Warrants”), exercisable for a period of 24 months following the Closing Date, to acquire in aggregate that number of Units which is equal to 7% of the number of Units sold under the Offering (including Units issued in connection with the exercise of the Over-Allotment Option) at an exercise price equal to the Issue Price.