VR Resources Ltd (CVE:VRR) (OTCBB:VRRCF) has closed an upsized, non-brokered private placement that raised C$2,293,223 to fund mineral exploration on its properties in Nevada and Ontario.
The junior explorer offered investors 9,014,654 units at C$0.22 and 1,291,667 flow-through common shares at C$0.24 each, according to a statement Thursday.
On May 25, VR Resources announced its intention to raise only C$1.34 million but decided to increase the offering.
READ: VR Resources looks to bolster blue sky potential at Ranoke and Big Ten properties by adding greenfield exploration
“The funds successfully closed in this private placement will give us added strength going into the drill programs planned for the second half of this year on our Amsel gold target in Nevada and Ranoke copper-gold target in Ontario,” said CEO Michael Gunning.
He added that the money “will also strengthen our ability to execute on new opportunities and new properties, which will strengthen those core activities and strategies.”
Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share for C$0.35 each for a period of 18 months from the closing date.
In connection with the financing, VR Resources said it paid cash fees of $41,082.40 and issued 177,193 warrants exercisable at C$0.35 each for a period of 18 months from closing to certain finders.
VR Resources said certain company insiders participated in the financing and all securities issued will be subject to a four-month hold period from the date of closing.
Meanwhile, the company has approved the allocation of 900,000 incentive stock options, exercisable for a period of five years, at a price of C$0.28 to directors, officers, employees and consultants. The allocation includes 800,000 incentive options to directors and officers.
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