Yellowhead Mining Inc. announced Oct. 31 that the company proposes to complete a non-brokered private placement of up to a maximum of 13,000,000 common shares at an issue price of $0.65 per share for gross proceeds of up to $8,450,000. In connection with the offering, the company has entered into a term sheet and has agreed to pay a finder’s fee equal to five per cent of the gross proceeds with respect to the issuance of up to approximately $5,000,000 of the offering.
The closing of the offering is expected to occur on or about Nov. 7, and is subject to all necessary regulatory and stock exchange approvals, including the TSX.
Greg Hawkins, chairman of the board and interim chief executive officer, reports: “The management team of professional engineers, finance, and permitting experts continues with their commitment to the task of building the Harper Creek Project. Following the closing of $5 million of the offering, we will have $10.5 million in working capital, including $8.2 million in cash, and we will be comfortably positioned to complete the newly defined critical path activities with BC Hydro and the permitting offices. Paul Sweeney, strategic corporate advisor to the company, and I have been working closely with CFO Saurabh Handa and the rest of the team to detail a medium and long term financing plan to get us through to start of construction and eventual production. With that in hand we can address the concerns of potential strategic partners and shareholders of Yellowhead.”
Yellowhead is developing a proposed open pit copper-gold-silver mine at Harper Creek, which is located about 10 km southwest of Vavenby.