Key Takeaways:
Radisson Mining has entered into a "bought deal" agreement with underwriters for a private placement expected to raise C$20,000,340.
The proceeds are designated for "Canadian exploration expenses," specifically for deep drilling and development at the O'Brien Gold Project in Quebec.
Offering Snapshot:
(P1) Radisson Mining Resources Inc. (TSXV: RDS) (OTCQX: RMRDF) announced an agreement for a C$20 million “bought deal” private placement to fund exploration at its flagship O’Brien Gold Project in Quebec.
(P2) The financing consists of 14,493,000 flow-through shares priced at $1.38 per share, according to the company's press release dated May 5, 2026. ATB Cormark Capital Markets is acting as the lead underwriter and sole bookrunner for the offering.
(P3) The deal includes an option for the underwriters to purchase additional shares, potentially increasing the total gross proceeds to over C$23 million. The flow-through shares will be offered to purchasers in all Canadian provinces under the listed issuer financing exemption, making them exempt from a hold period under applicable securities laws.
(P4) Proceeds from the sale will be used for further exploration and development at the O'Brien project, which the company aims to complete by the end of 2027. The offering is expected to close on or about May 28, 2026, subject to regulatory approvals.
The agreement was made with a syndicate of underwriters led by ATB Cormark Capital Markets. In consideration for their services, the underwriters will receive a cash commission of 6% of the gross proceeds, reduced to 3% for sales to purchasers on a "President's List." This commission will be paid from the company's existing cash reserves and not from the offering's proceeds.
The underwriters have been granted an option to increase the offering size by up to an additional $3,000,120. This option can be exercised up to 48 hours before the closing date. If fully exercised, the total funds raised would be C$23,000,460.
Radisson will use the gross proceeds to incur "Canadian exploration expenses" that qualify as "flow-through mining expenditures" under Canada's Income Tax Act. These funds are earmarked for the 100% owned O'Brien Gold Project in the Abitibi region of Québec, a historically significant mining camp. The planned work includes deep drilling that goes beyond the scope of the current program.
The O'Brien project's July 2025 Preliminary Economic Assessment (PEA) outlined an 11-year mine life with Indicated Mineral Resources estimated at 0.63 million ounces of gold and Inferred Mineral Resources of 1.69 million ounces.
This article is for informational purposes only and does not constitute investment advice.
