Hawthorne Gold (TSX-V:HGC)(PINK SHEETS:HWTHF) said Thursday it will raise up to $10 million through a non-brokered private placement.
The company has agreed to sell up to around 90.9 million common shares. Skyocean Ventures Investment, a company associated with Hawthorne shareholder China Mineral Holdings, has already agreed to purchase approximately 68.2 million common shares at a price of $0.11 per common share for gross proceeds of $7.5 million.
China Mineral currently holds about 14.3 million special warrants of Hawthorne, with each special warrant good for a unit, consisting of one common share and one half of one transferable common share purchase warrant.
Hawthorne is required to obtain majority shareholder approval for the placement and possibly minority approval, due to Skyocean becoming a controlling holder.
The new funds will be used for the exploration and development of Hawthorne's Table Mountain Mine in northern British Columbia, as well as for general working capital purposes.
Canada-based Hawthorne is working towards becoming a junior gold producer through its Table Mountain mine and the continued resource development at the nearby Taurus deposit.
Disclosure: No positions