EGR Exploration Ltd. (TSX-V:EGR) said it has closed a non-brokered private placement, which consisted of 6,818,182 units of the company at a price of C$0.11 each and 1,428,572 flow-through units at a price of C$0.14 each, for gross proceeds to the company of $950,000.
The company said that proceeds from the sale of flow-through shares will be used to fund multiple stages of exploration on the Detour West property over the next year, culminating with the potential of diamond drilling and additional targets to explore. In addition to the exploration, proceeds from the units private placement will be used for corporate working capital.
Each unit in the placement consists of one common share of the company and one-half of one common share purchase warrant and each flow-through unit consists of one flow-through common share and a half warrant. Each warrant is exercisable by the holder to acquire one common share at a price of C$0.22 for a period of 36 months expiring on May 15, 2026.
Insiders are participating in the offering for $116,950. All securities issued with respect to the offering will be subject to a hold period expiring on September 16, 2023.
Finder’s fees of $14,649 were paid in cash and 129,900 finder’s warrants were issued to certain eligible parties. Each finder’s warrant is exercisable at C$0.11 for a period of 12 months expiring on May 15, 2024.
Airborne magnetics completed
In a brief exploration update, EGR announced that Precision GeoSurveys Inc completed flying the airborne magnetics over areas never flown previously. All the information is being reviewed and interpreted and EGR said it will use the data to target areas of interest to follow up with further exploration and will provide an update on the results when the final analysis is completed.
The company also said it has applied for the Ontario Junior Exploration Program grant (OJEP). The application is still pending, but once approved the funds of up to $200,000 will be used for the exploration of the Detour West property.
In a statement, Daniel Rodriguez, EGR CEO and director, commented: "We are moving forward with our exploration plan. The airborne magnetics is complete, and we are in the process of interpreting the data. This new data will assist in targeting and narrowing down our focus on our large Detour West property.”
He added: “I want to thank the new and existing shareholders participating in this financing. We will continue executing our plan and working towards making a discovery."
Contact the author at jon.hopkins@proactiveinvestors.com