VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) has announced a non-brokered private placement to raise $800,000 to complete an additional drill hole later this month into the large kimberlite breccia complex discovered at its Northway property in northern Ontario.
The junior exploration company said the drill hole will enable VR Resources to increase the amount of drill core available for the initial micro-diamond evaluation of the kimberlite at Northway, to be completed at the SRC laboratory in Saskatoon following completion of the drilling.
The financing includes one flow through (FT) subscription and one hard dollar (HD) subscription by two institutional investors, both current core shareholders in VR Resources.
The flow-through component will consist of up to 2,051,282 FT company units, at a price of $0.195 per FT unit, for gross proceeds of up to $400,000.
Each FT unit will consist of one FT VR Resources common share plus one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire one additional common share at an exercise price of $0.25 per share for a period of 36 months from the closing date.
The hard-dollar component of the offering will consist of up to 2,222,222 company units at a price of $0.18 per HD unit for gross proceeds of up to $400,000.
Each HD unit will consist of one VR Resources common share plus one common share purchase warrant, with each whole warrant entitling the holder to acquire one additional company common share, at an exercise price of $0.25 per share, for a period of 36 months from the closing date of the financing.
VR Resources noted that it may pay a finder’s fee of up to 6% cash for subscriptions to the financing.
The financing is expected to close on or before June 30, 2023, and is subject to all regulatory approvals, including the approval of the TSX Venture Exchange.
The securities issued in connection with the offering will be subject to a hold period of four months plus one day from the date of closing, in accordance with applicable securities legislation.
VR Resources is an established junior exploration company focused on greenfield opportunities on large-footprint mineral systems in the western US and Canada.
Contact Sean at sean@proactiveinvestors.com