TORONTO (miningweekly.com) – Botswana-focused diamond explorer Pangolin Diamonds has closed an oversubscribed private placement for gross proceeds of $628 621, 25% over the original financing target.
The company said on Thursday that the proceeds of the offering would be used for drilling, geological-geophysical and sampling campaigns at the company's 100%-owned diamond projects in Botswana, and for general corporate purposes.
The TSX-V-listed company issued 12.57-million units at a price of $0.05 each. Each unit comprised one common share and one common share purchase warrant, with each warrant entitling the holder to buy another share at a price of $0.05 for a period of 60 months.
The placement was completed at a 25% premium to the closing price of the TSX-V-listed common shares on Wednesday.
Pangolin insiders participated in the total amount of $39 623 in the offering, with president and CEO Leon Daniels lifting his stake in the company to 12.91% on a partially diluted basis, assuming he exercised his warrants and stock options.
The offering was subject to the final acceptance of the TSX-V and all securities issued under the offering were subject to a four month and one day hold period.
Pangolin had a number of prospecting licence applications pending, with a pipeline of projects ranging from the brownfield Tsabong North project to the advanced exploration Malatswae project, as well as several grassroots-level targets.