Newrange Gold Corp. (CVE:NRG) (OTCMKTS:NRGOF) (FRA:X6C) has announced the closing of a non-brokered private placement for gross proceeds of $1 million consisting of 6,250,000 flow-through units (FT units) of the company at a price of $0.16 each.
Additionally, the company said it has closed the first tranche of a non-brokered private placement for gross proceeds of $705,400 consisting of 5,878,332 non-flow-through units (NFT Units). The second and final tranche of approximately $1,294,600 is expected to close within about a week and is fully subscribed.
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Each FT unit consists of one common share of the company and one-half share purchase warrant. Each FT warrant entitles the holder to purchase one common share at an exercise price of $0.25 at any time until April 16, 2023. Proceeds will be used to advance the company’s North Birch Project in the Red Lake Mining Division of Ontario.
Each NFT unit consists of one common share of the company and one-half share purchase warrant. Each NFT Warrant entitles the holder to purchase one common share at an exercise price of $0.25 at any time until April 16, 2023. Proceeds will be used to advance the company’s flagship Pamlico Project in Nevada and for general working capital.
Cash finder’s fees or commissions in the amount of $97,860 were paid on the financings and the company issued 232,167 share purchase finders warrants. Each finders warrant entitles the holder thereof to purchase one common share at an exercise price of $0.25 for a two-year period. Additionally, the company issued 625,000 share purchase finders units exercisable at $0.16 per finders unit. Each finders unit entitles the holder to purchase one common share and one-half share purchase warrant at an an exercise price of $0.25 for a two-year period.
IBK Capital Corp. of Toronto was the lead in placing the flow-through financing and assisted with the non-flow-through portion. All securities issued are subject to a four-month hold period from the date of issuance and subject to TSX Venture Exchange approval.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Newrange is focused on district-scale exploration for precious metals in favorable jurisdictions including Nevada, Ontario and Colorado. With locally high-grade, near-surface oxide gold mineralization, the company’s flagship Pamlico Project is poised to become a significant new Nevada discovery. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders.
Contact the author at jon.hopkins@proactiveinvestors.com