Calgary (pcJ News Briefs) – Prairie Provident Resources Inc. (TSX: PPR) has closed previously announced bought deal equity financing of 5,971,000 subscription receipts at $0.67 per subscription receipt and 5,195,000 flow-through (FT) common shares at $0.77 per FT share for gross proceeds of approximately $8.0 million.
The offering was made through a syndicate of underwriters led by Mackie Research Capital Corporation.
Prairie Provident Resources has granted the underwriters an over-allotment option exercisable in whole or in part at any time prior to April 15, 2017 to purchase up to an additional 15% of the number of subscription receipts and FT shares at the offering prices, for additional gross proceeds of up to approximately $1,200,000.
Purchases under the Offering included director and officer participation together with outside investors. Tim Granger, CEO of Prairie Provident, personally purchased 373,000 Subscription Receipts.
The gross proceeds from the sale of subscription receipts will be held in escrow pending closing of the previously announced $41 million acquisition of strategic assets in the Greater Red Earth area of northern Alberta.