12:56 PM EDT, 05/02/2024 (MT Newswires) -- Revival Gold ( RVLGF ) said Thursday it raised about C$7.2 million in a brokered private placement.

The offering was made in connection with the proposed acquisition by the company of all the issued and outstanding shares of Ensign Minerals. The deal is expected to close within the next couple of weeks.

Under the Offering, about 22.4-million subscription receipts of Revival Gold Amalgamation Corp. ("Revival Subco"), a wholly owned subsidiary of the company, were sold by Revival Subco at C$0.32 per receipt.

Each subscription receipt represents the right of a holder to receive, upon satisfaction or waiver of the escrow release conditions, one share of Revival Subco and one-half of one Revival Subco common share purchase warrant.

Eacg Revival Subco share issued under the offering will be exchanged for one common share of the company, and each Revival Subco warrant will be exchanged for one Revival share purchase warrant.

Each Revival warrant will be exercisable by the holder for one Revival share at an exercise price of C$0.45 per Revival warrant share for 36 months following the satisfaction or waiver of the Escrow release conditions.

The net proceeds are expected to be used, after the closing of the deal, to complete a preliminary economic assessment on Ensign's Mercur Project, advance permitting preparations on the company's Beartrack-Arnett Project, continue exploration for high-grade material at Beartrack-Arnett, and for working capital and general corporate purposes.

The net proceeds from the sale of the subscription receipts, net of 50% of the total cash commission, and the agent's expenses have been deposited in escrow and will be held by the subscription receipt agent pending the satisfaction or waiver of the escrow release conditions.

Revival shares were last seen unchanged at C$0.34 on the TSX Venture Exchange.