Ridgeline Minerals Corp. (CVE:RDG) has announced the closing of a non-brokered private placement consisting of 7,500,000 units at a price of C$0.50 per unit which raised gross proceeds of C$3.75 million.
In a statement, Chad Peters, Ridgeline Minerals CEO, commented: "We are delighted with the strong show of support from core shareholders in our oversubscribed Private Placement. The Company is now well-positioned to continue adding value at the drill bit with 6,500 meters budgeted at the Selena and Carlin-East projects in the first half of 2021."
The net proceeds of C$3,607,350 from the placement will be used to advance Ridgeline's exploration program across its portfolio of four highly prospective gold-silver projects in the Carlin and Battle Mountain - Eureka Trends in Nevada, as well as for general corporate and working capital purposes.
READ: Ridgeline Minerals increases previously announced non-brokered private placement to 7.5 million units due to strong investor demand
Each unit in the placement consists of one common share of the company and one-half of one non-transferable common share purchase warrant. Each warrant can be exercisable to acquire one share at a price of C$0.75 until April 30, 2023, provided that, commencing on the date that is four months and one day after the closing date on August 31, 2021, the closing price of the shares on the TSX Venture Exchange is at a price equal to or greater than C$1.50 for a period of ten consecutive trading days, then the company will have the right to accelerate the expiry date of the warrants by giving written notice to the holders that they will expire on the date that is not less than thirty days from the date notice is provided.
All securities issued under the placement will be subject to a hold period of four months and a day under applicable securities laws, which will expire on August 31, 2021. The company said it paid an aggregate cash finder's fee of C$142,650. and an insider of the company participated in the private placement for an aggregate amount of approximately C$5,000.
Ridgeline is a discovery-focused gold explorer with a proven management team and a 125 square kilometre exploration portfolio across four projects in the highly prospective Carlin and Battle Mountain - Eureka Trends in Nevada, USA.
Contact the author at jon.hopkins@proactiveinvestors.com