Further to Laramide’s press release dated January 10, 2020, Laramide Resources Ltd. (“Laramide” or the “Company”) is pleased to announce that the Company has closed its non-brokered private placement (the “Offering”), issuing 22,500,000 units (the “Units”) at a price of C$0.20 per Unit, for aggregate gross proceeds of C$4,500,000.
The Company plans to use the proceeds of the Offering to complete the final milestone payment of the Churchrock acquisition and for general working capital purposes.
Each Unit consists of one common share in the capital of the Company and one share purchase warrant (a “Warrant“), with each Warrant entitling the holder to purchase one additional common share at a price of C$0.30 for a period of 36 months from the date of closing of the Offering. In the event that the common shares trade at a price of C$0.60 or greater for a period of 20 consecutive trading days at any time following the date that shareholder approval is obtained, the Company may accelerate the expiry date of the Warrants by giving notice to the holders and, in such case, the Warrants will expire on the 10th business day after the date on which such notice is given by the Company.
The Common Shares and Warrants issued pursuant to the Offering are subject to a statutory four-month hold period expiring on May 17, 2020. The exercise of an aggregate of 11,250,000 Warrants shall be subject to the approval by shareholders of the Company by way of a simple majority of votes cast in respect of such matter. The common shares issued in connection with the Offering will be eligible to vote.
The Company paid a cash commission of 5% in finder’s fees to certain parties with respect to services provided in connection with the Offering, and an additional 200,000 common shares were issued to eligible finders in lieu of cash commission. PowerOne Capital Markets Limited acted as a finder in connection with a portion of the private placement.
Source: Laramide Resources | Laramide Resources Closes $4.5 Million Equity Financing
