Montero Mining and Exploration Ltd (TSX-V:MON, OTC:MXTRF) is moving to raise up to C$2.2 million through a private placement, proceeds it says will go toward drilling at its Elvira Gold Project and advancing its broader portfolio of Chilean mineral assets.
The non-brokered offering will consist of up to 4 million units priced at C$0.55 each. Each unit includes one common share and one half of one common share purchase warrant, with each whole warrant exercisable at C$0.70 for twelve months from issuance.
The warrants carry an acceleration provision: if Montero's common shares close at or above C$1 on the TSX Venture Exchange for ten consecutive trading days, the company may accelerate the warrant expiry to 30 days following notice to warrant holders.
Beyond exploration and drilling at Elvira, Montero said the net proceeds will support its other Chilean mineral projects and general working capital and corporate purposes.