Tocvan Ventures Corp. (CSE:TOC) has announced the closing of its previously announced private placement with an institutional investor, Sorbie Bornholm LP, to raise an aggregate amount of C$600,000.
"We are pleased to be receiving continued support from Sorbie who share our long-term vision of discovery and development in Mexico,” said Brodie Sutherland, Tocvan's CEO in a statement.
“Funds will be utilized to accelerate the advancement of both of our gold-silver projects in Sonora and to aid in the evaluation of future acquisitions. With results from our bulk sample ongoing and future drill programs planned, the coming year will be one of our most exciting yet,” he added.
The proceeds from the placement will be deposited with a third-party escrow agent and delivered to Tocvan in monthly tranches of $50,000 over the next 12 months under the terms and conditions of a sharing agreement between the company and Sorbie Bornholm. The funds will go towards the advancement of the Pilar and El Picacho Au-Ag projects in Sonora, Mexico and for general working capital purposes.
READ: Tocvan Ventures says results from surface channel sampling at its Pilar Gold-Silver Project have 'exceeded expectations'
Each unit in the placement consisted of one common share of the company at a price of $0.544 and one-half of one share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.68 each, for a period of 36 months from the date of issue, subject to acceleration.
The company has the right to accelerate the expiry date if, at any time, the average closing price of its common shares on the CSE is equal to or greater than $1.00 for 10 consecutive trading days. In that event, the expiry date will be accelerated to a date that is 30 days after the company issues the acceleration notice through a news release, provided that the acceleration notice is issued within 10 business days after the end of the particular 10-day period.
The investor will receive a corporate finance fee of $36,000, payable via the issuance of 66,177 common shares and 33,088 warrants on the same terms.
Tocvan is a well-structured exploration development company 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 in 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