Titan Mining Corporation (TSX: TI, pending) has filed a final prospectus in connection with its initial public offering (IPO) of common shares. Titan Mining will issue 35,750,000 common shares at a price of $1.40 per share for gross proceeds of $50,050,000.
The offering is being managed by a syndicate of underwriters led by Scotia Capital Inc., Canaccord Genuity Corp., and National Bank Financial Inc. and includes PI Financial Corp.
Davies Ward Phillips & Vineberg LLP and Cassels Brock & Blackwell LLP act as legal counsels to Titan Mining and the underwriters respectively.
Titan Mining has granted the underwriters an over-allotment option for an additional 5,362,500 Shares (being equal to 15% of the offered shares) at the offering Price for additional gross proceeds of $7,507,500.
The closing of the offering is expected to occur on or about October 19, 2107. Titan Mining common shares are expected to commence trading on the TSX under the symbol “TI” on the closing date.
Titan Mining intends to use net proceeds from the offering (i) to satisfy outstanding payment obligations in respect of Titan’s acquisition of all of the issued and outstanding shares of Balmat Holding Corp., (ii) to refurbish equipment and recommence operations at the Empire State Mine, (iii) for exploration and evaluation, and (iv) for general corporate purposes.
After giving effect to the offering, Titan Mining will have 98,096,900 common shares issued and outstanding, or 103,459,400 common shares if the over-allotment option is exercised in full.
Richard W. Warke, President and CEO of the company, is the largest shareholder, directly and indirectly control 40,701,000 common shares.
Titan is a Canadian-based zinc exploration and development company with its principal asset being the Empire State Mine Project in the State of New York.
Titan Mining through its wholly-owned subsidiary, Titan Mining (US) Corporation, acquired all of the issued and outstanding shares of Balmat Holding Corp. from Northern Zinc LLC, a wholly-owned subsidiary of Star Mountain Resources, Inc. on December 30, 2016. As a result of the acquisition, Titan now indirectly controls Balmat Holding’s wholly-owned subsidiary St. Lawrence Zinc Company, LLC (SLZ) and its mining assets, the Empire State Mine Project.
Star Mountain previously acquired Northern Zinc, Balmat Holding, SLZ and SLZ’s mining assets from Hudbay Minerals Inc. (TSX: HBM) in November 2015.
photo credit: Titan Mining