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Superior Gold Inc. Completes Initial Public Offering

Published: 03/01/2017

Team: Chad Accursi, Shaun Khullar, Jonathan Sherman, James G. Morand

On February 23, 2017, Superior Gold Inc. completed an initial public offering of common shares for aggregate gross proceeds of $28.45 million. Under the offering, Superior Gold issued 28,450,000 common shares at a price of $1.00 per common share. The syndicate of agents for the IPO was led by GMP Securities L.P., as lead agent and sole bookrunner, and included BMO Capital Markets, Cormark Securities Inc., Haywood Securities Inc., TD Securities Inc. and Sprott Capital Partners.

On March 1, 2017, Superior Gold announced that it completed the sale of an additional 4,267,500 common shares pursuant to the full exercise of the over-allotment option, bringing the total gross proceeds under the IPO to $32,717,500.

The prospectus also qualified the distribution of 32,600,000 common shares issuable upon the deemed exercise of 32,600,000 previously issued special warrants, which were issued upon the automatic exercise of 32,600,000 subscription receipts of Superior Gold pursuant to a private placement for aggregate gross proceeds of $16.3 million. GMP Securities L.P. acted as sole agent for the private placement.

In connection with the closing of the IPO, Superior Gold also issued to Northern Star Resources Ltd. 18,859,041 common shares, representing approximately 20.6% of the issued and outstanding common shares and 14,429,521 common share purchase warrants.

Superior Gold’s common shares commenced trading on the TSX Venture Exchange under the symbol "SGI" at the opening of trading on February 23, 2017. Superior Gold’s IPO was the first IPO of a mining company in Canada since July 2015.

Cassels Brock represented the agents in connection with the IPO and the private placement with a team consisting of Chad Accursi, Shaun Khullar and Jonathan Sherman (Securities and Mining) and James Morand (Tax).