VR Resources Ltd. (CVE:VRR) (OTCBB:VRRCF) has announced plans to raise up to $440,000 via a non-brokered private placement of up to 2,000,000 units at a price of $0.22 each.
The company said it will use the gross proceeds for mineral exploration on its properties in Nevada and Ontario, and for general administrative costs.
Each Unit under the placement will consist of one common share of the company and one-half of a common share purchase warrant.
Each whole warrant will entitle the holder to acquire one additional common share at an exercise price of $0.40 per common share for a period of 18 months from the closing date of the financing.
The group pointed out that certain insiders of the company intend to participate in the financing, adding that, based on a determination that fair market value, the participation of insiders will not exceed 25% of the market capitalization of the company.
The company also said it may pay a commission of 6% on select proceeds raised under the financing, either as cash or as the percentage of units sold in common shares.
The closing date of the financing is expected to occur on or before August 30, 2019 and is subject to all regulatory approvals including the approval of the TSX Venture Exchange.
Contact Jon Hopkins at jon.hopkins@proactiveinvestors.com