Maritime Resources (TSXV:MAE) and Dundee Corporation Close Successful Rights Offering with $8 Million in Proceeds

2 min read | September 11, 2024 11:09 PM EDT | By Team Kalkine Media

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Maritime Resources (TSXV:MAE) and Dundee Corporation Close Successful Rights Offering with $8 Million in Proceeds

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Maritime Resources Corp. (TSXV:MAE) and Dundee Corporation (TSX: DC.A) have successfully closed Maritime's previously announced rights offering (the "Rights Offering"). The offering, which concluded on August 13, 2024, involved issuing rights to holders of Maritime’s common shares, allowing them to purchase additional shares at a price of $0.034 per share. The offering has proven successful, raising a total of $8 million through the subscription of 235,294,118 common shares.

The funds raised from the Rights Offering will be strategically allocated to several key areas. The majority of the net proceeds will be directed towards upgrading Maritime’s Pine Cove mill to enhance its ability to process stockpiled ore. Additionally, the company plans to finalize and publish a revised feasibility study in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, aimed at optimizing the value of its Hammerdown Gold Project. The proceeds will also support drilling 3,000 meters at the Stog'er Tight deposit and cover general corporate expenses.

To ensure the success of the Rights Offering, Maritime entered into a Standby Commitment Agreement with Dundee Resources Limited, a wholly-owned subsidiary of Dundee Corporation. Under this agreement, Dundee committed to exercising its basic and additional subscription privileges for its own rights and to purchasing any unexercised rights available. As a result, the Standby Purchaser acquired 132,694,992 common shares, generating aggregate gross proceeds of $4,511,630 for the company.

As compensation for their standby commitment, Maritime issued 33,173,748 non-transferable compensation warrants to the Standby Purchaser. Each warrant provides the right to purchase one common share at a price of $0.05 per share for a period of 36 months from the date of issuance.

The successful closing of the Rights Offering underscores Maritime Resources’ commitment to advancing its projects and optimizing its operations. With substantial funding now secured, the company is well-positioned to enhance its Pine Cove mill, progress its feasibility study for the Hammerdown Gold Project, and advance its exploration activities at the Stog'er Tight deposit.

This strategic financial move, backed by Dundee Corporation, marks a significant step forward for Maritime Resources, setting the stage for continued growth and development in its mineral exploration and production activities.

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