TSX-V-listed manganese developer Giyani Metals Corporation has entered into an agreement with Cormark Securities and Beacon Securities, which will acquire 22.72-million units from the treasury of Giyani at a price of $0.44 apiece for total gross proceeds of about $10-million.
Each unit will consist of one common share and a half a common share purchase warrant of Giyani.
Each warrant will entitle the holder thereof to acquire one common share from Giyani at a price of $0.60 apiece for a period of 24 months after the closing of the offering.
In addition, Giyani has granted the co-underwriters an option to buy up to an additional 15% of the units of the offering on the same terms exercisable at any time up to 30 days following the closing of the offering, for market stabilisation purposes and to cover over allotments, if any.
Giyani plans to use the net proceeds of the offering for the advancement of its K.Hill manganese oxide project, in Botswana, as well as for working capital and general corporate purposes.
Closing of the offering is expected to occur on or about November 30, and is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX-V and the applicable securities regulatory authorities.