Toronto-based Black Hawk Mining (TSE) recently filed a preliminary prospectus for a proposed rights offering designed to raise $3 million for a feasibility study on the company’s nickel- copper-cobalt property in Maine. Under the rights offering, shareholders can buy units consisting of one common share and one share purchase warrant. Holders who fully exercise their rights will be entitled to subscribe on a pro-rata basis for additional units available if some rights aren’t exercised.
According to Black Hawk, its largest shareholder DCC Equities will exercise the additional subscription privileges to ensure that all rights are exercised.
Proceeds will be used to complete a feasibility study and conduct environmental studies required for permitting on the Union property.
Also, drilling got under way recently at Black Hawk’s Minago nickel property, 140 miles south of Thompson, Man., where the company is attempting to confirm continuity of mineralized zones and outline areas of high-grade mineralization.
This program is being funded through a $1-million flow-through share financing arranged earlier this year. Black Hawk currently has 13.5 million shares outstanding.
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