NorthWest Copper Corp (TSX-V:NWST) has announced the closing of the second and final tranche of its over-subscribed non-brokered private placement, upsized on January 30, 2023, to 22,173,913 units at a price of $0.23 each for gross proceeds of up to $5.1 million.
The first tranche consisted of 8,837,955 units for gross proceeds of approximately $4,332,730 and closed on February 6, 2023, and the second and final tranche consisted of 3,159,131 units for gross proceeds of approximately $726,600. Combined with the first tranche of the private placement, the company sold 21,997,086 units for approximately $5,059,330.
The net proceeds from the private placement will be used primarily to fund general working capital purposes and for exploration at the company’s portfolio of projects, including the Lorraine property.
READ: NorthWest Copper closes first tranche of over-subscribed private placement for gross proceeds of approximately $4,332,730
Each unit in the offering consists of one common share of the company and one-half of one non-transferable common share purchase warrant, with each 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.
Mark O’Dea, Lewis Lawrick and Teodora Dechev, each a director of the company, acquired a total of 740,000 units in this tranche, for gross proceeds of $170,200. 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 common shares and warrants issued under the second and final tranche of the private placement, and any common shares issuable on exercise of such warrants, are subject to a four-month and a day hold period expiring June 10, 2023, in accordance with applicable Canadian securities laws, and TSX Venture Exchange hold period, as applicable.
No finder’s fees were paid in connection with the closing of the second and final tranche. Aggregate finder’s fees of $9,000 cash were paid to Canaccord Genuity Corp in connection with the private placement.
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, NorthWest Copper is well positioned to participate fully in a strengthening global copper market.
Contact the author at jon.hopkins@proactiveinvestors.com