Hercules Metals closes C$31.5 million private placement

Hercules Metals Corp. (TSXV: BIG) completed a bought deal private placement of 53.4 million common shares at C$0.59 per share, raising gross proceeds of approximately C$31.5 million.

The offering consisted of two components: 36.4 million shares issued under the Listed Issuer Financing Exemption for C$21.4 million, and 17 million shares issued through other prospectus exemptions for C$10 million. BMO Capital Markets and SCP Resource Finance served as joint bookrunners for the transaction.

The Toronto-based exploration company plans to use the net proceeds for exploration and development of its Hercules property in western Idaho and general working capital purposes. The company paid the underwriters a cash fee equal to 6% of gross proceeds.

Company insiders subscribed for 185,000 shares in the offering, representing a related party transaction under securities regulations. The participation was exempt from formal valuation or minority shareholder approval requirements as the fair market value did not exceed 25% of the company's market capitalization.

Shares issued under the Listed Issuer Financing Exemption are not subject to a statutory hold period, while shares from the concurrent offering face a four-month and one-day hold period under Canadian securities laws.

The offering remains subject to final approval from the TSX Venture Exchange. Hercules Metals focuses on developing copper exploration projects in Idaho, including the Hercules Project which contains the Leviathan porphyry copper system.

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