TRU Precious Metals Corp. (TSX-V:TRU, OTCQB:TRUIF) has announced an increase in the size of its non-brokered private placement financing to raise gross proceeds of between $500,000 to $600,000, thanks to a significant investment from Resurgent Capital Corp.
The insider participation is expected to be in excess of 25% of the offering which will consist of units priced at 5 cents each. Each unit will include one common share in the company's capital and one share purchase warrant, which is exercisable for one additional share at a price of 7.5 cents for 36 months from the date of issuance.
"We are pleased to have received this significant investment from Resurgent Capital, which has enabled us to increase the size of the private placement," said Joel Freudman, president and CEO of Tru Precious Metals in a statement. "These funds will be used to continue our exploration for gold and copper in central Newfoundland and build long-term shareholder value."
In connection with the offering, eligible finders will receive a cash commission equal to 8% of the gross proceeds raised from subscribers introduced by them, and non-transferable finder warrants equivalent to 8%of the number of units issued to such subscribers.
All securities issued under the offering will be subject to a four-month statutory hold period in accordance with applicable securities laws. Completion of the offering remains subject to TSX Venture Exchange approval. The offering is anticipated to close by May 2, 2023.
Tru Precious Metals is exploring for gold and copper in the highly prospective central Newfoundland gold belt on its 100%-owned Golden Rose project, originally optioned from Toronto Stock Exchange-listed Altius Minerals.
Tru is a portfolio company of Resurgent Capital, a merchant bank that provides venture capital market advisory services and proprietary financing to promising public and prepublic microcapitalization companies listing on Canadian stock exchanges.
Contact the author at jon.hopkins@proactiveinvestors.com