VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) has announced a $2 million non-brokered private placement as it prepares for upcoming drill programs at its projects in northern Ontario.
The junior exploration company said the funds will be directed to drilling this spring for the initial micro-diamond evaluation at its Northway kimberlite breccia pipe discovery, and for infill drilling and metallogeny at the Hecla-Kilmer rare-earth elements (REE) critical mineral discovery.
The private placement financing includes both flow-through and hard dollar units, the company said. The flow-through (FT) component will consist of up to 8,571,429 units at $0.16 per FT unit for gross proceeds of up to $1.2 million, with each FT unit consisting of one FT common share of the company and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at an exercise price of $0.23 per common share for 18 months from the closing date.
READ: VR Resources confirms discovery of kimberlite breccia pipe at Northway property in Ontario
VR said the hard-dollar (HD) component will consist of up to 5,714,286 units at $0.14 per HD unit for gross proceeds of up to $800,000. Each HD unit will consist of one common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire an additional share at an exercise price of $0.23 for 18 months from the closing date of the financing.
The company said it may pay a finder’s fee of up to 6% cash for subscriptions to the financing.
The closing date for the placement is expected to be on or before April 28, 2023, and is subject to all regulatory approvals, including the approval of the TSX Venture Exchange, the company said, adding that the securities issued in connection with this Financing will be subject to a four-month hold period from the date of closing under applicable securities legislation.
VR noted that the securities to be issued will not be registered under the US Securities Act of 1933, as amended, or any US state securities laws, and may not be offered or sold in the ‘United States’ or to ‘US persons’ (as such terms are defined in Regulation S under the US Securities Act) without registration under the US Securities Act and all applicable state securities laws or compliance with an exemption from such registration.
VR is an established junior exploration company focused on unique, greenfield opportunities on large-footprint mineral systems for critical metals, copper and gold in the western United States and Canada.
VR is the continuance of four years of active exploration in Nevada by a Vancouver-based private company. The foundation of VR is the diverse experience and proven track record of its board in early-stage exploration, discovery and M&A. The company is financed for its exploration and corporate obligations. VR owns its properties outright and evaluates new opportunities on an ongoing basis, whether by direct staking or acquisition.
Contact the author at stephen.gunnion@proactiveinvestors.com