Almaden Minerals Ltd. (“Almaden” or the “Company”) (TSX: AMM) (NYSE MKT: AAU) is pleased to announce that it has entered into an agreement with Sprott Capital Partners and Cormark Securities Inc. to act as co-lead underwriters (the “Co-Lead Underwriters”), on their own behalf and, if applicable, on behalf of a syndicate of underwriters (collectively with the Co-Lead Underwriters, the “Underwriters”), pursuant to which the Underwriters will arrange for substituted purchasers to purchase, on a bought deal private placement basis, 8,572,000 units (“Units”) at $1.75 per Unit to raise gross proceeds of $15,001,000 (the “Offering”). The Underwriters will also have the option (the “Underwriters’ Option”) to purchase from Almaden up to an additional 1,285,800 Units for additional gross proceeds of $2,250,150.
Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be transferable and will entitle the holder to acquire one Common Share (a “Warrant Share”) for three years from the date of closing of the Offering at a price of $2.45 per Warrant Share.
The Offering will take place by way of a private placement to qualified investors in such provinces of Canada as the Underwriters may designate, and otherwise in those jurisdictions where the Offering can lawfully be made. All securities issued under the Offering will be subject to a four month hold period from the date of issue in accordance with applicable securities laws in Canada, and potentially additional restrictions under the laws of other jurisdictions in which the Offering may be made. Closing of the Offering is subject to satisfaction of certain conditions including receipt of applicable regulatory approvals including approval of the TSX and NYSE MKT.