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VANCOUVER - First Mining Gold Corp. (TSX:FF) (OTCQX:FFMGF), a mining company with a market capitalization of $171 million, announced Tuesday it has closed an upsized non-brokered private placement, raising approximately $24.4 million in gross proceeds. The company’s shares have declined over 25% year-to-date, with particularly sharp losses of nearly 8% in the past week.
The mining company issued 95 million units at $0.18 per unit for $17.1 million and 33.35 million flow-through units at $0.22 per unit for $7.3 million. Each unit consists of one common share and one-half of a common share purchase warrant, with each whole warrant exercisable at $0.27 per share for 36 months. According to InvestingPro analysis, First Mining maintains a strong liquidity position with a current ratio of 4.7x, indicating robust short-term financial health.
This private placement, combined with a previously closed $12 million public offering on July 22, brings First Mining’s total recent fundraising to $36.4 million.
According to the company’s statement, proceeds from the standard units will be used to advance its Springpole and Duparquet gold projects and for working capital purposes. The flow-through funds will be used for eligible Canadian exploration expenses at these same projects before December 31, 2026, with all qualifying expenditures to be renounced to initial purchasers by December 31, 2025.
Securities issued under the offering are subject to a statutory hold period of four months and one day under Canadian securities laws.
First Mining is developing two major Canadian gold projects - the Springpole Gold Project in northwestern Ontario, which is undergoing a feasibility study with an environmental impact statement submitted in November 2024, and the PEA-stage Duparquet Gold Project in Quebec’s Abitibi region.
The company was established in 2015 by Keith Neumeyer, who also founded First Majestic Silver Corp.
In other recent news, First Mining Gold Corp. announced the successful closing of its over-subscribed public offering, raising approximately $12 million. This offering included 66,670,000 units priced at $0.18 per unit, with each unit comprising one common share and one-half of a common share purchase warrant. The company completed this offering through a syndicate of placement agents, providing investors with the opportunity to purchase additional shares at $0.27 per share within 36 months. Meanwhile, FutureFuel Corp. revealed plans to temporarily idle its biodiesel production. This decision comes despite recent proposals from the Environmental Protection Agency to increase biomass-based diesel mandates. FutureFuel cited uncertainty surrounding the Clean Fuel Producers Tax Credit as the primary reason for this temporary suspension. This credit was meant to replace the expired Blenders Tax Credit, impacting the company’s operational decisions. These developments reflect ongoing adjustments in response to financial and regulatory environments for both companies.
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