Giyani Metals Corp, a Canadian company exploring for manganese in Kanye, Lobatse & Otse recently announced that it has closed its previously announced bought deal equity public offering, raising funds to resource its ongoing Botswana manganese projects.
A total of 26,136,395 units of the Company were issued at a price of $0.44 per Unit for gross proceeds of approximately $11.5 million, (over P120 million) which included the exercise in full of the over‐allotment option granted by the Company to the Underwriters.
Each Unit consists of one (1) common share and one half of one (½) Common Share purchase warrant. Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.60 until December 3, 2023.
The Offering was co-led by Cormark Securities Inc. and Beacon Securities Limited. In connection with the Offering, the Underwriters received a cash commission equal to 5.5% of the gross proceeds of the Offering, other than in respect of sales of Units to certain purchasers on a president’s list, as agreed upon between the Company and the Underwriters (of which a cash commission of 2.0% of the gross proceeds realized from such sales was paid).
Giyani also issued an aggregate of 1,381,241 broker warrants to the Underwriters that entitle the holders thereof to purchase Common Shares until December 3, 2023 at a purchase price of $0.44 per Common Share.
The Units were qualified for distribution by way of a short‐form prospectus dated November 30, 2021 filed with the securities commissions in each of the provinces of Canada, except Québec.
The net proceeds of the Offering will be used for the advancement of the Company’s manganese oxide projects in Botswana, including the K.Hill Project, and for working capital and general corporate purposes, all as further described in the Prospectus.
Giyani Metals is also undertaking advanced exploration work in Lobatse and Otse, as the projects move closer to Mine development, Giyani says it will build a massive processing plant in a central location between Kanye, Lobatse & Otse for easy feeding of the ore from into the plant. Manganese is a critical base metal and raw materials for making power storage batteries.
