VR Resources Ltd (CVE:VRR) (OTCMKTS:VRRCF) announced Friday that it will raise up to $1.3 million in a non-brokered private placement, to go towards a number of projects, including the firm's Nevada projects as well as the Ranoke property, located in Ontario.
According to the firm, 4.5 million flow-through common shares were offered at a price of C$0.15 per share, for gross proceeds of C$675,000, which has been fully subscribed. Flow-through shares are a unique financing vehicle for junior mining companies in Canada, giving investors tax incentives for funding resource exploration.
READ: VR Resources expands footprint in Walker Lane belt of Nevada as it stakes multiple new claims
The flow-through funds will be used at the firm's recently acquired large-scale copper-gold target in northern Ontario. The new property, Ranoke, is notable for its size and lack of previous exploration. The property consists of 345 claims in a single contiguous block covering over 7,000 hectares, and very near to the CNR railway that supplies the town of Moosonee, Ontario.
Funds will go towards geophysical and geochemical surveys planned for later this spring at the Ranoke property, which will help the company refine drill targets.
An additional 5 million units will be offered at a price of $0.13 per unit for gross proceeds of C$650,000, with each unit consisting of one common share and one-half of a share purchase warrant. Each warrant can be exercised into a common share at C$0.25 per warrant, which will expire in 18 months from closing.
Funds raised from the private placement will go towards ongoing exploration at the firm's Nevada properties, property evaluations and for general administrative and corporate purposes.
The firm announced earlier this week that it has staked multiple new claims to expand its ground in the Walker Lane belt of west-central Nevada.
Shares of VR Resources were at C$0.13 on Friday.
Contact Katie Lewis at katie@proactiveinvestors.com