Thunder Mountain Gold Swaps $1.1M Debt for Equity, Launches $6.4M Placement
THMG has more than doubled off its 52-week low of $0.21.
Summary
Thunder Mountain Gold is issuing 1.58 million shares at $0.70 to wipe out $1.1 million in debt, with an insider taking $469,500 of that. Simultaneously, the company launched a non-brokered private placement for up to $6.4 million via 9.14 million units at the same $0.70 price, each with a half warrant exercisable at $1.00 for two years. The debt swap cleans up the balance sheet while the placement funds drilling and geophysics at South Mountain. This follows yesterday's initial placement announcement and the May 10-Q that showed accelerating cash burn. Both transactions need TSX Venture Exchange approval.
At the time of this announcement, THMG was trading at $0.75 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $70.1M. The 52-week trading range was $0.21 to $1.01. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.