Great Western Minerals (CVE:GWG) says it has priced its previously announced $15 million brokered private financing with the proceeds going towards the development of its South African project, the company said Monday.
The company has hired a syndicate of agents led by privately-held investment dealer Byron Capital Markets to sell 23.8 million shares of Great Western for 63 cents each.
In addition, the rare earths processor has granted the syndicate an option to exercise up to 48 hours prior to the deals closing to place an extra 3.5 million shares for additional gross proceeds of $2.25 million.
Moreover, Great Western said it would pay a 5 percent cash commission of the money raised to the syndicate.
The offering should close on Nov. 10, and the securities issued will be subject to a four month hold period. Also, the financing is subject to regulatory and TSX Venture Exchange approvals.
The Saskatoon-based company plans to use profits from the offering to continue development at its Steenkampskraal project, in South Africa, as well as for general corporate purposes.
Great Western's rare earth specialty alloys are used in the battery, magnet and aerospace industries, and are produced by its two subsidiaries: Less Common Metals in Birkenhead, UK, and Great Western Technologies in Troy, Michigan.
Aside from its Steenkampskraal mine in South Africa, the Saskatoon, Saskatchewan-based company also holds interests in six rare earth exploration properties in North America.
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