Rye Patch closed a $27 million credit facility with Macquarie to support its acquisition of the Florida Canyon Gold Mine. Macquarie and Canaccord Genuity are lead agents for a proposed equity financing to further support the transaction.

The company has also granted the agents an option exercisable in whole or in part at any time prior to the closing of the offering, to sell as agent an additional 45.5 million subscription receipts at C$0.22 ($0.17) per subscription receipt for total additional aggregate gross proceeds of up to C$10.010 million ($7.7 million) on the same terms and conditions as the offering.

The net proceeds from the offering will be used to finance, in part, the purchase price under the company’s agreement to acquire 100% ownership of the Florida Canyon gold mine in Pershing County, NV and related assets as well as certain working capital and corporate requirements needed to redevelop and expand the Florida Canyon gold mine. Closing of the acquisition is anticipated to occur on or before July 31, 2016, subject to regulatory approvals and satisfying conditions of closing under the acquisition agreement.

Conditions in the company’s favor include completion of a credit facility for not less than $25 million in addition to the $27 million credit facility from Macquarie and completion of an equity financing of not less than $30 million.