Millennial Potash closes private placements for $18.28M

Executive Summary

• Millennial Potash Corp. has closed a bought deal LIFE offering and a concurrent non-brokered private placement, raising a total of $18,287,500.
• The transaction involved the issuance of 5,995,901 units (5.75 million LIFE units and 245,901 non-LIFE units) at a price of $3.05 per unit.
• Net proceeds will be primarily used for a definitive feasibility study for the Banio potash project and general working capital.

Key Details

• Total Gross Proceeds: $18,287,500.
• LIFE Offering Details:
  • Closed previously announced bought deal private placement.
  • 5,750,000 LIFE units issued at $3.05 per unit.
  • Gross proceeds from LIFE offering: $17,537,500.
  • Includes full exercise of the underwriters' option to purchase up to an additional 15% of LIFE units.
  • Led by Cantor Fitzgerald Canada Corp. (lead underwriter/sole bookrunner) and SCP Resource Finance LP.
• Concurrent Non-Brokered Private Placement:
  • 245,901 additional units issued at $3.05 per unit.
  • Gross proceeds: $750,000.
• Unit Composition:
  • Each unit (LIFE and non-LIFE) consists of one common share and one-half of one common share purchase warrant.
  • Warrant Terms: Entitles holder to acquire one common share at an exercise price of $4.00 for a period of 36 months from the closing date.
• Use of Proceeds:
  • Costs for a definitive feasibility study for the Banio potash project.
  • General working capital.
• Underwriter Compensation:
  • Cash commission paid: $1,052,250.
  • Non-transferable compensation options issued to underwriters: Up to 230,000 common shares.
  • Option Exercise Price: $3.05 (offering price).
  • Option Expiration: January 29, 2029.
  • Resale Restriction: Common shares underlying compensation options are subject to a four-month resale restriction.
• Regulatory/Resale Restrictions:
  • LIFE units: Not subject to a hold period under applicable Canadian securities laws.
  • Non-LIFE units, shares, and warrants: Subject to a four-month resale restriction.
  • LIFE units issued pursuant to Part 5A of National Instrument 45-106 and Coordinated Blanket Order 45-935.
  • Offering remains subject to final approval of the TSX Venture Exchange.

Notable Quotes

• "We are very pleased to complete this bought deal LIFE offering with Cantor Fitzgerald and SCP Resource Finance. This financing was supported by leading global asset management firms, which demonstrates confidence in Millennial's progress to date and our development plans going forward. With three major ongoing technical programs: a definitive feasibility study, ESIA and planned stage 3 drilling, we believe we will significantly derisk the Banio potash project in the coming months." — Farhad Abasov, Chairman