Euro Sun Mining Announces the Filing and Receipt of the Preliminary Prospectus Relating to the Previously Announced Bought Deal Public Offering of Units

TORONTO, May 21, 2020 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce that it has filed, and obtained a receipt for, a short form preliminary prospectus today with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with its previously announced offering whereby Sprott Capital Partners LP on its own behalf and, if applicable, on behalf of a syndicate of underwriters (together, the “Underwriter”) pursuant to which the Underwriter has agreed to purchase, on a bought deal basis, 51,282,052 units of the Company (the “Units”) at a price of C$0.39 per Unit (the “Issue Price”) for gross proceeds of approximately C$20,000,000 (the “Offering”). 

Each Unit will be comprised of one (1) common share in the capital of the Company (each, a “Common Share”) and one half of one Common Share purchase warrant entitling the holder to purchase one Common Share at C$0.55 at any time on or before the date which is 36 months  after the Closing Date (as defined below).

The Company has granted to the Underwriter the option to purchase up to that number of additional Units equal to 15% of the Offering size at the Issue Price to cover over-allotments, if any, and for market stabilization purposes (the “Over-Allotment Option”). 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$3,000,000 will be raised pursuant to the Offering, and the aggregate gross proceeds of the Offering will be approximately C$23,000,000.

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 applicable securities regulatory authorities.

On the Closing Date, the Company shall pay to the Underwriter a cash commission of 7% of the gross proceeds raised under the Offering (including in connection with the exercise of the Over-Allotment Option) and shall issue warrants of the Company to the Underwriter, exercisable for a period of 24 months following the Closing Date, to acquire that number of Common Shares 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.