Onyx Gold closes $20-million bought deal offering
Executive Summary
- Onyx Gold Corp. closed a brokered bought‑deal private placement raising $19,999,999.50 in total gross proceeds.
- The offering comprised 4.74 M flow‑through (FT) shares at $2.11 and 6,665,733 hard‑dollar (HD) shares at $1.50, with the underwriters exercising their full $2 M option.
- Net proceeds will fund eligible Canadian exploration expenses in Ontario (FT portion) and broader exploration/general corporate purposes (HD portion); a non‑brokered FT placement of ~$5.6 M is also pending closure.
Key Details
- Brokered Private Placement – Flow‑Through Shares
- Quantity: 4,740,000 FT shares
- Price per share: $2.11 (CAD)
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Gross proceeds: $10,001,400
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Brokered Private Placement – Hard‑Dollar Shares
- Base quantity: 5,332,400 HD shares at $1.50 = $7,998,600
- Option exercised: additional 1,333,333 HD shares at $1.50 = $1,999,999.50
- Total HD shares issued: 6,665,733
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Gross proceeds (HD): $9,998,599.50
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Total Gross Proceeds: $19,999,999.50
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Underwriting Syndicate
- Lead underwriters: Cormark Securities Inc., Canaccord Genuity Corp.
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Underwriter cash commission: 6 % of gross proceeds = $1,199,999.97
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Use of Proceeds – FT Shares
- To incur eligible Canadian exploration expenses qualifying as flow‑through mining expenditures on Ontario projects, to be completed by Dec 31 2026.
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Expenditures will be renounced to FT shareholders by Dec 31 2025; indemnification provisions for any CRA adjustments.
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Use of Proceeds – HD Shares
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Funding for exploration of mineral properties and general corporate purposes.
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Regulatory Framework
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Offering conducted under NI 45‑106 (Prospectus Exemptions) via the Listed Issuer Financing Exemption; no hold period imposed on FT or HD shares.
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Non‑Brokered Private Placement – Update
- Target: 2.3 M FT shares at $2.43 per share.
- Expected gross proceeds: ≈ $5,589,000 (≈ $5.6 M).
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Anticipated closing “in the coming weeks”; reference to prior release dated Sept 17 2025 for details.
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Access to Documents
- Amended offering documents available on SEDAR+ and the company website.
Notable Quotes
(No direct quotes were provided in the release.)