Murchison Minerals Ltd (TSX-V:MUR, OTCQB:MURMF) said that it plans to raise up to $1.5 million in a non-brokered private placement.
The Burlington, Ontario-based exploration company said the proceeds will be directed towards its exploration activities focused on its BMK zinc-copper-gold project in Saskatchewan and HPM nickel-copper-cobalt property in eastern Quebec, as well as working capital.
Following the offering, Murchison will issue hard dollar (HD) units at $0.06 per HD unit, Quebec flow-through units (QFT units) at a price of $0.07 per QFT unit and national flow-through units (NFT units) at a price of $0.065 per NFT unit, in any combination to raise aggregate gross proceeds of up to $1.5 million.
Each HD unit will comprise one common share and one-half of a common share purchase warrant and each QFT unit and NFT unit will be comprised of one flow-through common share and one-half of a warrant. Each whole warrant shall be exercisable to acquire one additional common share at a price of $0.10 for a period of 24 months from the date of closing.
Murchison said a finder's fee may apply to a portion of the proceeds raised under the offering in the amount of 6% cash and 6% finders' warrants. All securities issued following the offering will be subject to a four-month hold period from the date of issue.
The company said it is likely that Donald K Johnson, a director and control person of the company will acquire a certain number of units under the offering to maintain his current ownership at around 30%.
"Murchison is in a great position, having two key assets with BMK and HPM, located in Canada's top mining jurisdictions, Saskatchewan, and Quebec, respectively,” said Murchison Minerals CEO Troy Boisjoli.
“At a time when critical minerals like nickel, copper, cobalt, and zinc are in continuing high demand globally the company is excited to advance both of its projects over the course of 2023," he added.
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