NorthWest Copper Corp (TSX-V:NWST) has announced the closing of the first tranche of its over-subscribed non-brokered private placement financing which consisted of 18,837,955 units for gross proceeds of approximately $4,332,730.
The non-brokered private placement financing, announced on January 23, 2023, was upsized on January 30, 2023, to 22,173,913 units at a price of $0.23 per unit in total for gross proceeds of up to $5.1 million.
Each unit in the private placement financing consists of one common share of the company and one-half of one non-transferable common share purchase warrant, with each whole warrant exercisable to purchase one additional common share for a period of two years from the date of closing at an exercise price of $0.30.
READ: NorthWest Copper says non-brokered private placement now to raise gross proceeds of up to $5.1M as a result of increased demand
Proceeds from the private placement will be used primarily to fund general working capital purposes and exploration at the company’s portfolio of projects, including the Lorraine property. The private placement may be closed in one or more tranches as subscriptions are received.
Richard Bailes, a director of the company acquired 250,000 units in the first tranche, for gross proceeds of $57,500. Such participation is considered a 'related party transaction' within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101).
The company has agreed to pay cash finder’s fees of $9,000 to Canaccord Genuity in connection with the closing of the first tranche of the private placement.
The common shares and warrants issued under the private placement, and any common shares issuable on exercise of warrants are subject to a four-month and a day hold period expiring June 4, 2023, in accordance with applicable Canadian securities laws, and TSX Venture Exchange hold period, as applicable.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, US Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
NorthWest Copper is a new copper-gold explorer and developer with an exciting pipeline of projects in British Columbia. With a robust portfolio in a tier-one jurisdiction, the company is well-positioned to participate fully in a strengthening global copper market.
Contact the author at jon.hopkins@proactiveinvestors.com