EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) announced that it has increased its previously disclosed private placement due to additional investor demand to comprise up to 16,363,636 units at C$0.11 per unit for total proceeds of up to C$1.8 million.
Each unit will consist of one common share and one warrant, with each warrant allowing the purchase of one common share at C$0.14 for 36 months.
The proceeds will be used for environmental and permitting work at the Scotia Mine and for general working capital.
Certain insiders of the company are expected to participate in the offering, which constitutes a related party transaction but is exempt from minority shareholder approval.
The company may also pay finder's fees of up to 7% and issue broker warrants entitling holders to purchase common shares at C$0.11 for 36 months.
The first tranche of the financing closed on October 29, 2024, and the second tranche is expected to close around November 20.