Minera Announces C$10M Bought Deal

Flash Update

Minera Alamos (MAI.V) announced this morning a $10M bought deal financing, at .63 CAD, with National Bank. Minera has granted the Underwriter with an over allotment option of $1.5M that will most likely get exercised. There were no warrants as part of this financing.

With this move, the company was able to double the treasury after securing a third asset Cerro de Oro (CdO) in just two weeks for roughly 5% dilution collectively (cost of asset plus financing). The financial flexibility will now permit for a more aggressive approach with CdO while proving ample working capital to diminish any possibility of using expensive working capital financing from Osisko Gold Royalties. The deal price at .63 compares to the 20-day VWAP of .64 and since the CdO transaction of .695.

In summary, fast tracking CdO in this Gold environment while avoiding a warrant and providing additional financial flexibility, all for a relatively modest cost is a job well done by management in my opinion. I am looking at the CdO and Bought Deal as a combo package and given the modest cost of both, with the upside in this third asset, is a thoughtful strategic move.

All the best.

Source: https://www.mineraalamos.com/site/assets/files/4010/august_18th_2020_10_million_bought_deal_financing_with.pdf

Disclaimer and Disclosures:

I own the stock. Therefore, I have an inherent bias.

I am not a certified investment professional nor a geologist. Assume everything I say herein is wrong. In fact, I am wrong more often than right. Please do your own due diligence and consult with your own investment advisor. Do not buy or sell on anything contained in this write up herein. None of this is a recommendation or solicitation to buy or sell. 

I did not receive any compensation for this blog post. I did not receive any compensation from the company mentioned. I did receive a Minera Alamos shirt.

The content contained herein is strictly my opinion only. I do not warrant to the accuracy of the content or whether this is a suitable investment and disclaim any responsibility.


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