Avanti Gold closes C$51.75M private placement for DRC drill program

Avanti Gold Corp. (CSE: AGC, FSE: X370, OTCQB: AVTGF) has closed a bought deal private placement of 103,500,000 units at C$0.50 per unit, raising gross proceeds of C$51.75 million, according to a company statement.

The offering included 13,500,000 units issued through the full exercise of an over-allotment option. Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable at C$0.65 per share for 36 months from issuance.

The offering was led by SCP Resource Finance LP as sole bookrunner and lead underwriter, with BMO Nesbitt Burns Inc. and Haywood Securities Inc. participating in the syndicate. The underwriters received a cash fee equal to 6% of gross proceeds and 6,210,000 broker warrants exercisable at C$0.50 per share for 36 months.

Net proceeds are designated for a 42,000-metre drill program at the company's Misisi Project in the Democratic Republic of the Congo, advancement of a maiden Preliminary Economic Assessment on the project, and general working capital purposes.

Chief Executive Officer Mohamed Cisse said the financing "places Avanti in a strong financial position to execute our planned 42,000-metre exploration program at the Misisi Project," adding that six drill rigs are dedicated to the program.

Company insiders, including Cisse and certain board and management members, participated in the offering alongside institutional and strategic investors. The insider participation constitutes a related party transaction but is exempt from formal valuation and minority approval requirements under Multilateral Instrument 61-101, as the value of securities issued to each insider does not exceed 25% of the company's market capitalization.

The Misisi Project spans 133 square kilometers along the Kibara Gold Belt and hosts the Akyanga gold deposit, which carries an inferred mineral resource of 40.8 million tonnes at 2.37 grams per tonne, totaling 3.11 million ounces of gold.

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