Gold and Silver

Finlay Minerals stock jumps on upsized private placement

Finlay Minerals stock jumps on upsized private placement
Mining News Pro - Due to strong investor demand, British Columbia-focused junior miner Finlay Minerals (TSXV: FYL) has decided to increase the size of its previously announced private placement from C$2million ($1.63m) to up to C$2.635 million ($2.14m).

Under the upsized private placement, the company will sell about 18.16 million non-flow-through units at a price of C$0.09 per unit, and about 8.33 million flow-through units at C$0.12 per unit.

Each unit (NFT or FT) would comprise one common share of Finlay Minerals and one common share purchase warrant. Each warrant can be exercised at a price of C$0.135 for a period of 24 months following its issuance.

Crescat Capital LLC said last week it intends to make a strategic investment in the company, and it will have the right and option to participate in future financings to maintain its equity interest for a three-year period from the closing date of the placement.

“Crescat’s goal, at this stage of the cycle, is to identify and invest in a portfolio of premier exploration assets that the majors will need to replace their reserves after a decade of under-investment. We think Finlay is one of the most exciting silver stories in Canada today,” Kevin Smith, Crescat’s founder and chief investment officer, said in a news release.

“Finlay management is excited about dramatically moving forward with exploration on the Silver Hope project, aided by the strategic investment of Crescat Capital. New exploration concepts were tested in 2020 and lead to the discovery of the new Equity East zone, which will be one of the targeted areas in 2021,” Finlay’s president and CEO Robert Brown said.

Finlay’s Silver Hope project is located approximately 40 km southeast of the town of Houston in central British Columbia. The property claims surround the former Equity silver mine and include the newly discovered Equity East target, a porphyry copper-molybdenum mineralization discovered in 2010, along with three silver-copper mineralized zones.

Shares of Finlay Minerals advanced 4.1% by 12:15 p.m. ET Friday, giving the base and precious metal explorer a market capitalization of nearly C$11.7 million.

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