Tocvan Ventures Corp. (CSE:TOC) said it has closed a second tranche of its previously announced non-brokered private placement of units for gross proceeds of $278,027.80.
The proceeds of the offering will go toward 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 testwork at Pilar that will advance the project toward 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 from the offering will also be used for general working capital.
The second tranche consisted of the issuance of an aggregate of 534,669 units at a price of 52 cents per unit. Each unit consists of one common share in the capital of the company and one-half common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of 62 cents, for a period of 18 months from the closing of the offering.
READ: Tocvan Ventures says shortly to close non-brokered private placement for gross proceeds of up to C$325,000
If, on any 10 consecutive trading days occurring after four months and one day has elapsed following the closing date of the offering, the closing sales price of the shares (or the closing bid, if no sales were reported on a trading day) as quoted on the Canadian Securities Exchange is greater than 90 cents per common share, the company may provide notice in writing to the holders of the warrants by issuance of a press release that the expiry date of the warrants will be accelerated to the 30th day after the date on which the company issues such press release.
In connection with the offering, the company paid aggregate cash commissions to arm's-length finders who assisted with the offering of approximately $22,602.78 and issued 43,467 finder warrants. Each finder warrant is exercisable at a price of 52 cents per common share for a period of 18 months from the closing of the offering. In total, the company has raised $507,718.60 in two tranches for an aggregate of 976,382 units at a price of 52 cents per unit.
The company has also made the offering available to certain subscribers under the investment dealer exemption which limits a shareholder to a maximum investment of $15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction.
Closing of the offering is subject to several conditions, including receipt of all necessary corporate and regulatory approvals, including the 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 United States securities legislation.
Tocvan was created in order to take advantage of the prolonged downturn in the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success.
The company has approximately 38 million shares outstanding and 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