Capitan Mining (CAPT.V) announced earlier this month it is planning to issue 16M common shares at C$0.20 per share in a warrant-less financing. About half of the financing will be taken up by Michael Gentile who will end up with a 15.3% ownership in Capitan Mining upon completing the financing and assuming the financing won’t be upsized.
This will increase Capitan’s share count to just under 53 million shares giving it a market capitalization of just over C$15M based on the current share price. Meanwhile, the cash position will be boosted to about C$3.5-4M as Capitan Mining has about C$1.9M in working capital as of the end of December.
Disclosure: The author has a small long position in Capitan Mining. Please read our disclaimer.
