B2Gold Invests C$12.1 Million in Founders Metals
Rhea-AI Summary
Founders Metals Inc. (TSXV: FDR) (OTCQX: FDMIF) has announced a C$12.1 million investment from B2Gold Corp. at C$2.75 per share. This Strategic Investment, combined with a previously announced C$20 million bought deal private placement, will raise a total of C$32.1 million, fully funding Founders' planned 2025 budget. Upon completion, B2Gold will own 5.0% of Founders' issued and outstanding common shares on a non-diluted basis.
The investment validates Founders' Antino Gold Project and provides access to B2Gold's expertise in exploring and developing world-class mining assets. The deal includes an investor rights agreement, allowing B2Gold to increase ownership up to 9.9% and collaborate on technical aspects and new prospects in the Guiana Shield. The Strategic Investment is expected to close in Q4 2024, subject to customary conditions and regulatory approvals.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Secured C$12.1 million investment from B2Gold Corp.
- Total funding raised reaches C$32.1 million, fully covering 2025 exploration budget
- Strategic partnership with B2Gold provides validation and technical expertise
- Investor rights agreement allows for potential increased ownership and collaboration
- Enables ramping up of exploration at Antino Gold Project, including addition of a fourth diamond drill
Negative
- Potential dilution of existing shareholders due to new share issuance
News Market Reaction – FDMIF
On the day this news was published, FDMIF gained 1.03%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - October 11, 2024) - Founders Metals Inc. (TSXV: FDR) (OTCQX: FDMIF) (FSE: 9DL0) ("Founders" or the "Company") is pleased to announce that, further to the press release dated October 10, 2024, it has entered into an agreement with B2Gold Corp. (TSX: BTO) (NYSE American: BTG) (NSX: B2G) ("B2Gold") for a C
Colin Padget, Founders' President & CEO commented, "We are very pleased with B2Gold's investment in Founders along with the support and validation it brings to our Antino Gold Project. We look forward to drawing on B2Gold's experience in exploring for, and developing, world-class mining assets in similar geological environments. This broader financing package leaves Founders well positioned to ramp up exploration at Antino, fully funding our planned 2025 exploration budget and the near-term addition of a fourth diamond drill."
Clive Johnson, B2Gold's President & CEO added, "This investment continues B2Gold's strategy of identifying and investing early in discoveries with Tier 1 potential. The rigorous exploration efforts undertaken by Founders' technical and management team have clearly highlighted the district-scale potential of the Antino Gold Project. We look forward to lending our strong technical expertise and experience to support the Founders' team as they continue to define Antino's upside."
Pursuant to the Strategic Investment, B2Gold has agreed to purchase 4,400,000 Shares at a price of C
Agentis Capital Mining Partners is acting as financial advisor to the Company on the Strategic Investment.
The Strategic Investment is expected to close in the fourth quarter of 2024 and is subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
About Founders Metals Inc.
Founders Metals is a Canadian-based exploration company focused on advancing the Antino Gold Project located in Suriname, South America, in the heart of the Guiana Shield. Antino is 20,000 hectares and has produced over 500,000 ounces of gold from surface and alluvial mining to date1. The Company drilled 10,000 metres in 2023 and is fully financed for drilling in 2024.
12022 Technical Report - Antino Project; Suriname, South America. K. Raffle, BSc, P. Geo & Rock Lefrançois, BSc, P.Geo.
ON BEHALF OF THE BOARD OF DIRECTORS,
Per: "Colin Padget"
Colin Padget
President, Chief Executive Officer, and Director
Contact Information
Katie MacKenzie, Vice President, Corporate Development
katiem@fdrmetals.com
1.306.537.8903
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the use of proceeds from the Company's recently completed financings and the future or prospects of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect ", "is expected ", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to business, market, and economic risks, uncertainties, and contingencies that may cause actual results, performance, or achievements to be materially different from those expressed or implied by forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, other factors may cause results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company's most recent annual management discussion and analysis. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
All material information on Founders Metals can be found at www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226352