Strong news from Juggernaut Exploration (TSX-V: JUGR; FSE: 4JE): The exciting gold explorer, which plans to conduct the first drilling on its Big One project this summer, has secured the necessary capital – and then some!
As Juggernaut just reported, a bought deal financing with Stifel Canada for gross proceeds of CAD 11.5 million has now been closed. For this purpose, the company led by CEO Dan Stuart is issuing 4,492,187 units at CAD 2.56 each. Each of these units consists of one share and one-half warrant. Each whole warrant, in turn, entitles the holder to purchase one Juggernaut share at CAD 2.08 for a period of 24 months.
However, these are so-called flow-through shares, which are only available to Canadian investors as they include a tax benefit. In return, the company must use the proceeds from the sale of these FT shares exclusively for exploration work.
This is fortunate, as not only should shareholders be strongly interested in the fresh capital going directly “into the ground,” but the company also can hardly wait to begin work, as COO Manuele Lazzarotto explained to us in an interview at the PDAC:
The fact that Juggernaut has succeeded in completing such an extensive financing even before the first gold drilling begins demonstrates the institutional interest in the company and its project. We are equally excited!
