Vancouver-based Trilogy Metals has announced a nonbrokered private placement, led by its two biggest shareholders, to issue 5.85-million shares at $0.55 a share, raising about $3.22-million.
Electrum Strategic Opportunities Fund and a wholly owned subsidiary of South32 have indicated their intention to subscribe for $1.2-million each under the placement.
In addition to Electrum and South32, Trilogy president and CEO Tony Giardini and others have also indicated their intention to subscribe in the private placement.
Electrum currently holds 20.4% of the company's issued and outstanding common shares and will hold 21% after the private placement. South32 currently holds 11.0% of the company's issued and outstanding common shares and will hold 12.0% after the private placement.
Proceeds from the placement will be used for general corporate purposes.