Superior Gold Inc. (TSX-V: SGI) has closed its proposed initial public offering (IPO) of 28,450,000 common shares $1.00 per share for gross proceeds of $28.45 million.
Superior Gold common shares will commence trading on the TSX Venture Exchange under the symbol “SGI”.
GMP Securities L.P. acted as lead agent and sole bookrunner for the IPO. The syndicate of agents also included BMO Capital Markets, Cormark Securities Inc., Haywood Securities Inc., TD Securities Inc. and Sprott Capital Partners.
Stikeman Elliott LLP and Cassels Brock & Blackwell LLP acted as legal counsels to Superior Gold and the underwriters respectively.
Superior Gold also announced that the 32,600,000 outstanding special warrants will convert today into common shares of the company. Net proceeds from the special warrant financing were principally used as partial consideration for its acquisition of the Plutonic Gold Operations from Northern Star Resources Ltd. (ASX: NST)
In connection with the closing of the IPO, Superior Gold has issued to Northern Star Resources Ltd. 18,859,041 common shares, representing approximately 20.6% of the issued and outstanding common shares, and 14,429,521 warrants. Each warrant entitles Northern Star Resources to acquire one common share at an exercise price in U.S. dollars equal to a 100% premium to the offering price for a period of 5 years from the date of the closing of the IPO.
photo credit: Northern Star Resources