MONTRÉAL, QUÉBEC--(Marketwired - Jan. 4, 2018) - Mason Graphite Inc. ("Mason Graphite" or the "Company") (TSX VENTURE:LLG)(OTCQX:MGPHF) is pleased to announce that it has closed the bought deal private placement offering announced on December 12, 2017.
The Company issued, on a bought deal basis, a total of 18,750,000 common shares (the "Shares") at a price of $2.40 per Share (the "Offering").
The Offering was underwritten by a syndicate led by National Bank Financial Inc., and including Paradigm Capital Inc., Cormark Securities Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Eight Capital and TD Securities Inc. (collectively, the "Underwriters").
As previously disclosed, the net proceeds of the Offering will be used for development and construction expenses related to the Company's Lac Guéret graphite mine and Baie-Comeau, Québec concentrator plant project (the "Project"), the majority of which the Company expects to incur over the next twelve months, and for general corporate purposes. Development and construction expenses represent a portion of the Project's estimated $200 million capital expenditure budget.
"We are pleased by the strong ongoing support we've received from investors during the Offering" says Benoît Gascon, Mason Graphite's President & Chief Executive Officer. "These investments constitute a further endorsement of the quality and viability of the Project. This Offering represents an important milestone for the Company, and will enable us to continue working towards the successful realization of the Project, which is progressing according to the previously disclosed plan."
All securities issued at the closing of the Offering will be subject to a four month hold period under applicable Canadian securities legislation and the policies of the TSX Venture Exchange, which expires on May 5, 2018.
In connection with the Offering, the Underwriters received a cash commission equal to 5.0% of the gross proceeds raised under the Offering.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
About Mason Graphite and the Lac Guéret Project
Mason Graphite is a Canadian mining and processing company focused on the development of its 100% owned Lac Guéret natural graphite deposit located in northeastern Québec. The Company is led by a highly experienced team that has over five decades of experience in graphite production, sales, and research and development. For more information, visit www.masongraphite.com.
