Prime Mining Corp. Announces C$16.5 Million Bought Deal Private Placement Financing

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VANCOUVER, British Columbia, Dec. 01, 2022 (GLOBE NEWSWIRE) -- Prime Mining Corp. (“Prime”, or the “Company”) (TSX.V: PRYM, OTCQB: PRMNF, Frankfurt: A2PRDW) is pleased to announce that it has entered into an agreement with Desjardins Capital Markets, acting as sole bookrunner and co-lead, on behalf of a syndicate of underwriters co-led by Desjardins Capital Markets and TD Securities Inc. (the “Co-Leads Underwriters” and collectively, the “Underwriters”) whereby the Underwriters have agreed to purchase for resale, on a bought deal private placement basis, 11,000,000 units (the “Units”) at a price of $1.50 per Unit for gross proceeds of approximately $16,500,000 (the “Offering”). Each Unit will consist of one common share in the Company (each a “Common Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant shall be exercisable for one Common Share at an exercise price of $2.00 for a period of 36 months following the Closing Date (as defined below). If, following the Closing Date, the volume weighted average trading price of the Shares on the TSX Venture Exchange (“TSXV”) for any 10 consecutive trading days equals or exceeds $2.50, the Company may, upon providing written notice to the holders of Warrants, accelerate the expiry date of the Warrants to the date that is 20 days following the date of such written notice.

The net proceeds from the Offering will be used by the Company for exploration and development of the Company’s Los Reyes Gold-Silver Project and for general corporate purposes. Prime has also been informed that Pierre Lassonde intends to participate in the Offering.

The Underwriters will have the option, exercisable at any time prior to 48 hours before the Closing Date, to acquire up to an additional 15% of the number of Units purchased under the Offering. The Underwriters are to be paid a cash commission equal to 6% of the gross proceeds of the Offering, except that a commission of 3% of the gross proceeds will be paid from the sale of Units to certain purchasers designated by the Company to a maximum of $3,000,000 of the gross proceeds from the Offering.