Equity Metals (EQTY.V) has announced its plans to raise C$6M in a three-tranche raise. The first tranche will consist of C$1M in normal units priced at C$0.14 with each unit consisting of one share and ½ warrant with each full warrant exercisable at C$0.20 for a period of two years after closing.
The majority of the raise will consist of flow-through (C$0.15 per unit, same warrant terms) to the tune of C$3M and C$2M in charity flow-through priced at C$0.185. It’s clear the flow-through participants are likely getting the best deal here as their issue price is just one cent higher than the hard dollar raise.
Equity Metals will use the proceeds of this three tranche financing to continue its exploration activities on its flagship Silver Queen gold-silver project. Recent exploration results have been encouraging as the drill bit continues to intersect the very narrow, but very high-grade mineralization with the three most recent reported holes containing respectively 1.4 meters of 1,218 g/t silver-equivalent, 0.8 meters of 1,302 g/t silver-equivalent and 1.8 meters containing 468 g/t silver-equivalent.
Disclosure: The author has a long position in Equity Metals and is participating in the current (hard dollar) financing. Equity Metals is a sponsor of the website. Please read our disclaimer.
