Benchmark Metals (BNCH.V) likely expected its Preliminary Economic Assessment to generate renewed interest in its flagship Lawyers project in British Columbia. The share price had started to slide months before the PEA came out (the stock was trading over a dollar as recently as April but was trading at just 55 cents when the results of the PEA were released.
The company initially announced a C$16M best efforts placement with PI Financial as sole bookrunner but recently already increased the size of the placement to C$17.3M. As per the updated terms, the company expects to issue 22.1 million units at C$0.42 per unit and 16.è million flow-through units at C$0..48 per unit. Each unit will also contain half a warrant with an exercise price of C$0.65 and valid for two years.
It looks like Benchmark is raising the cash before it actually needs it because the company still had about C$25M in working capital as of the end of May. Raising an additional C$17.3M before expenses will top up the treasury to close to C$40M again which is a very comfortable position to continue to advance its flagship Lawyers project.
Disclosure: The author has no position in Benchmark Metals. Please read our disclaimer.
