Rupert Resources increases equity financing to $18 million

Rupert Resources (TSX: RUP) is increasing its public financing announced earlier this week to C$25 million ($18.3m) from C$20 million ($14.6m). The company has engaged with Cormark Securities and BMO Capital Markets as the co-lead underwriters.

Under the revised financing, Rupert Resources will issue nearly 7 million of its common shares at C$3.58 per share. The stock opened the session at C$3.68 a share.

The underwriters will have a 30-day option to buy an extra 15% over-allotment under the same terms. The financing is expected to close around Aug. 1, 2024, pending regulatory approval.

Rupert Resources will also conduct a concurrent private placement, offering approximately 3.3 million common shares at the same price and terms as the public offering. It previously had arranged to sell 2.6 million shares under this placement.

The funds from these offerings will support ongoing exploration activities, technical and environmental studies in Finland, and general corporate needs, as detailed in the short form prospectus.

The company’s main project is the Ikkari gold discovery in northern Finland, which is part of the larger Rupert Lapland project. This project also includes the Pahtavaara gold mine, mill and exploration permits.