Where is Americas Gold and Silver Corporation (USAS) Heading According to Wall Street?

Americas Gold and Silver Corporation (NYSE:USAS) is one of the best long-term penny stocks to invest in. Americas Gold and Silver Corporation (NYSE:USAS) announced on December 4 the successful closing of its previously announced “bought deal” private placement financing with a syndicate of underwriters led by Canaccord Genuity Corp. and BMO Capital Markets, collectively called the “Underwriters”. Management stated that the Offering comprised the issuance of 33,062,500 common shares at a price of $4.00 per Offered Share for aggregate gross proceeds of $132,250,000. This includes the full exercise of the Underwriters’ option.

Americas Gold and Silver Corporation (NYSE:USAS) anticipates the net proceeds of the bought deal financing to be used for the funding of the cash portion of the purchase price in association with the binding purchase agreement for the acquisition of 100% of Crescent Silver, LLC. In addition, the proceeds are expected to support working capital and fund capital expenditures at the Crescent Mine after the completion of the Acquisition, along with its use for working capital and general corporate purposes.

Americas Gold and Silver Corporation (NYSE:USAS) previously reported on November 13 that it entered into a binding purchase agreement to acquire 100% of Crescent Silver, LLC, which owns the Crescent Mine in Idaho, USA, for total consideration of around $65 million. According to the release, the considerable under the acquisition, payable upon the closing of the acquisition, include $20 million in cash and around 11.1 million common shares of Americas.

Americas Gold and Silver Corporation (NYSE:USAS) is involved in the exploration, acquisition, and development of mineral resource properties. The company’s operations are divided into the following segments: Cosalá Operations, Galena Complex, Relief Canyon, and Corporate and Other. The Cosalá Operations segment has operations in Mexico, while the Galena Complex and Relief Canyon segments operate in the United States.

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Disclosure: None. This article is originally published at Insider Monkey.