Bam Bam Resources Corp (CSE:BBR) (OTCPINK:NPEZF) (FRA:4NPB) said it had closed an over-subscribed private placing, raising almost C$2.6 million gross to fund exploration at its flagship Majuba Hill property in Nevada, US and for general working capital.
The group issued 5.2 million units at C$0.50 each for total gross proceeds of C$2.6 million, with each unit comprising one company share and one transferrable share purchase warrant.
READ: Bam Bam Resources set for C$2M raise to advance its Majuba Hill copper project in Nevada
The latter allows the holder to buy one share at an exercise price of C$0.80 for 36 months from closing.
If its shares trade at a closing price at or greater than C$1.50 per share for 10 consecutive trading days, Bam Bam may accelerate the expiry date of the warrants so they expire on the 30th day after the date of that notice.
The group is focused on advancing Majuba Hill, on which it has a lease deal, towards becoming a world-class copper deposit due to the growing electric vehicle (EV) industry, which uses the red metal throughout the motor and electrical system in each vehicle.
Majuba Hill sits 120 miles northeast of the Tesla (NADSAQ:TSLA) (FRA:TL0) Gigafactory and spans 4,822 acres of surface and mineral rights and is accessed via 23 miles of well-maintained dirt roads leading from US Interstate 80.
Historic data from the project suggests an economically feasible oxide deposit near-surface with the potential for a larger sulphide formation below.
Contact the author at giles@proactiveinvestors.com
