Tocvan Ventures Corp. (CSE:TOC) said it has closed a first tranche of its previously announced non-brokered private placement of units for gross proceeds of $229,690.80.
The tranche consisted of the issuance of an aggregate of 441,713 units at a price of $0.52 per unit. Each unit consists of one common share in the capital of the company and one-half common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of $0.62, for a period of 18 months from the closing of the offering
The company said the proceeds of the raise will go towards the advancement of the Pilar and El Picacho Au-Ag projects in Sonora, Mexico. With a primary focus on accelerating a bulk sample and metallurgical test work at Pilar that will advance the project towards permitting for mine development. Further drill planning will also be conducted following up on target areas at Pilar and the recent drill success at El Picacho. The proceeds will also be used for general working capital.
“We are now on the ground in Mexico with our team preparing for the bulk sample and conducting geological studies at Pilar.”, commented CEO, Brodie Sutherland in a statement. “This is an exciting time in the development of Pilar as the bulk sample will open new opportunities for us. We have received resounding support for the placement and expect the remainder to close quickly.”
READ: Tocvan Ventures says shortly to close non-brokered private placement for gross proceeds of up to C$325,000
In connection with the offering, the company paid aggregate cash commissions to arm’s length finders of approximately $20,689.08 and issued 39,787 finder warrants. Each finder warrant is exercisable at a price of $0.62 per common share for a period of 18 months from the closing of the offering.
Closing of the offering is subject to several conditions, including receipt of all necessary corporate and regulatory approvals, including the Canadian Stock Exchange (CSE). All securities issued in connection with the offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation in Canada as well as the required legend under applicable US securities legislation.
Tocvan is a well-structured exploration development company created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success. Tocvan is earning 100% into two exciting opportunities in Sonora, Mexico: the Pilar Gold-Silver project and the El Picacho Gold-Silver project.
Contact the author at jon.hopkins@proactiveinvestors.com