Transatlantic Mining set to raise $10mln to buy and develop US Grant mine

Transatlantic Mining Corp (CVE:TCO) has decided to raise $10mln via a placing to buy and develop the US Grant mine in Montana.

As previously reported the firm has been on a lease arrangement on the property since January 2016, but with an exclusive option to buy it.

In April it reported encouraging results from the site , which meant the production go-ahead decision for the project looked more likely.

The firm will issue 50mln units at 20 cents each , with each comprising one share and one-half of one share purchase warrant;

Each whole warrant will be exercisable at 30 cents within two years and the placing is scheduled to close on June 14.

The proceeds of the financing will be used as below:

• Purchase U.S. Grant mine                                        $2.3mln
• Develop mine access to the mineralization               $1.0mln
• Purchase new mining equipment                              $2.0mln
• Resource definition drilling                                        $1.5mln
• Kearsage due diligence                                             $0.5mln
• Working capital                                                          $2.7mln
• Total                                                                           $10mln

Chief executive Bernie Sostak plans to  convert his $1million short-term loan facility into shares as part of the placing, the firm said.

Story by ProactiveInvestors