In addition to the FT Offering, the Company completed a non-brokered private placement of 1,300,000 units (each, an “Ordinary Unit”) at a price of $0.05 per Ordinary Unit for aggregate gross proceeds of $65,000 (the “Concurrent Offering” and together with the FT Offering, the “Offering”). Each Ordinary Unit is comprised of one Common Share and one Warrant. Each Warrant shall entitle the holder thereof to acquire one Common Share at a price of $0.10 per Common Share for a period of 60 months from the date of issuance.
All securities issued pursuant to the Offering are subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The proceeds of the FT Offering will be used by the Company for eligible flow-through expenditures and the proceeds of the Concurrent Offering will be used for general corporate expenses.
In connection with the Offering, the Company paid finders’ fees to certain finders, consisting of: (i) a cash fee equal to $45,398; and (ii) 769,647 warrants (each, a “Finder’s Warrant”). Each Finder’s Warrant shall entitle the holder to acquire one Common Share at a price of $0.10 per Common Share for a period of 60 months from the date of issuance.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.