Midnight Sun Mining closes $30.47-million offering

Executive Summary

• Midnight Sun Mining Corp. has closed its previously announced upsized bought deal financing, raising aggregate gross proceeds of C$30,475,575.
• The offering consisted of 22,574,500 units priced at $1.35 per unit, including the full exercise of the underwriters' over-allotment option.
• Net proceeds will be utilized for advancing exploration on the company's Zambian projects and for general working capital.

Key Details

• Gross Proceeds: C$30,475,575 (including full exercise of underwriters' option).
• Units Sold: 22,574,500 units.
• Price Per Unit: $1.35.
• Structure: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to acquire one common share at an exercise price of $2.00 per share.
• Warrant Expiration: October 28, 2027.
• Underwriters: Led by Haywood Securities Inc. (lead underwriter and sole bookrunner); syndicate includes Beacon Securities Ltd., Red Cloud Securities Inc., and SCP Resource Finance LP.
• Exemption: Prospectus-exempt basis pursuant to the Listed Issuer Financing Exemption (LIFE) under National Instrument 45-106.
• Hold Period: Units issued to Canadian resident subscribers are not subject to a hold period.
• Use of Proceeds: Advancing exploration across the company's Zambian exploration projects and for working capital and general corporate purposes.
• Underwriter Compensation:
  • Cash commission: 6.0% of gross proceeds.
  • Compensation options: Transferable options to purchase up to 6.0% of the aggregate number of units sold (approx. 1,354,470 shares) at an exercise price of $1.35 per share, expiring October 28, 2027.
• Regulatory Status: Subject to final approval of the TSX Venture Exchange.