Excelsior Mining (MIN.TO) has already closed the first tranche of its financing after issuing 22.2 million new shares at a price of C$1.00 per share. This allowed the company to raise approximately US$17M in cash proceeds. Not only will this go a long way to fund the initial construction of the Gunnison Copper project, main shareholder Greenstone Resources will invest an additional C$16.5M at the same terms.
This means Excelsior Mining will be able to raise a total of US$30M (before expenses), which should be sufficient to cover half of the construction financing for the first phase of the project as well as a large part of the working capital needed before Gunnison turns cash flow positive.
Closing this financing will allow Excelsior Mining to tick a major box as not only does it fund the equity share of the capex financing, it also allow us to fine-tune our NAV/share expectations as the post-financing share count was the only ‘unknown’ factor. The comment period for the final permit (to be issued by the EPA) ends in about two weeks (on January 8th) and we don’t expect any major setbacks.
Go to Excelsior’s website
The author has a long position in Excelsior Mining. Excelsior is a sponsor of the website. Please read the disclaimer
