On May 17, 2023, Delta Resources Limited closed a “bought deal” private placement of (i) 7,143,000 “flow-through” units at a price of $0.63 per flow-through unit; and (ii) 12,222,400 HD units at a price of $0.45 per HD unit, for gross proceeds of approximately $10 million, which includes the exercise in full of the underwriters’ option.
Each HD unit consisted of one common share in the capital of Delta Resources and one-half of one common share purchase warrant. Each flow-through unit consisted of one common share in the capital of Delta Resources and one-half of one warrant, each of which will qualify as a “flow-through share” within the meaning of the Income Tax Act (Canada). Each warrant entitles the holder to purchase one common share in the capital of Delta Resources at a price of $0.63 for a period of two years following the closing of the offering.
The offering was completed by Cormark Securities Inc., on behalf of a syndicate of underwriters including Desjardins Securities Inc. and Haywood Securities Inc.
Cassels acted for the underwriters.