Mako closes $40.25M offering, $15M private placement

Executive Summary

• Mako Mining Corp. has closed a total financing of C$55.25 million, comprising a C$40.25 million bought deal private placement and a concurrent C$15 million non-brokered private placement.
• The bought deal involved the issuance of 5,031,250 common shares to the public via underwriters Stifel Canada and Cantor Fitzgerald Canada, including the full exercise of the overallotment option.
• The concurrent non-brokered placement involved the issuance of 1,875,000 common shares to funds managed by Wexford Capital LP, constituting a related party transaction.

Key Details

• Bought Deal Structure:
  • Gross proceeds: C$40.25 million.
  • Shares issued: 5,031,250 common shares.
  • Underwriters: Stifel Canada and Cantor Fitzgerald Canada Corp. (co-lead underwriters).
  • Commission: Underwriters received a cash commission of $2,415,000, representing 6.0% of the gross proceeds.
  • Overallotment: The full overallotment option was exercised.
• Non-Brokered Private Placement:
  • Gross proceeds: C$15 million.
  • Shares issued: 1,875,000 concurrent placement shares.
  • Investor: Funds managed by Wexford Capital LP (Wexford Catalyst Trading Ltd., Wexford Focused Trading Ltd., Wexford Spectrum Trading Ltd., and Debello Trading Ltd.).
  • Regulatory Status: Constitutes a related party transaction under TSX-V Policy 5.9 and MI 61-101; exemptions from formal valuation and minority shareholder approval were relied upon.
• Use of Proceeds:
  • Net proceeds intended for the ramp-up of operations at the Moss mine.
  • Construction of the company's development assets.
  • General working capital purposes.
• Shareholding Changes (Wexford Capital):
  • Pre-closing ownership: 38,234,072 shares (~47.73% of issued and outstanding shares).
  • Post-closing ownership: 40,109,072 shares (~46.10% of issued and outstanding shares).
  • Net change: Decrease of approximately 2.05% in percentage ownership due to dilution from the brokered offering, despite an increase in absolute share count.
• Listing and Exemptions:
  • Shares listed on the TSX Venture Exchange.
  • LIFE offered shares issued under the listed issuer financing exemption (NI 45-106).
  • No hold period applies to the shares under applicable Canadian securities laws.
  • Offering document available on SEDAR+.