VR Resources Ltd. (CVE:VRR) has announced a non-brokered private placement for gross proceeds of $1 million, with the financing to be undertaken in two parts.
The company said there will be a flow-through private placement consist consisting of up to 1,190,476 flow-through shares (FT Shares) at a price of $0.42 per FT share for gross proceeds of $500,000, plus a hard-dollar private placement consisting of 1,428,571 units at a price of $0.35 per unit for gross proceeds of $500,000. Each unit will consist of one common share of the company and one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire one additional common share at an exercise price of $0.55 each for a period of 18 months from the closing date of the financing.
VR Resources noted that it will use the gross proceeds of the financing for its mineral exploration business, and more specifically to solidify the company’s plan for follow-up drilling this September at its Hecla-Kilmer IOCG project in Northern Ontario, in response to a large, high amplitude and high contrast gravity anomaly announced last week.
READ: VR Resources identifies high amplitude gravity anomaly at Hecla-Kilmer property and plans follow-up Phase II drilling
The company said it may pay up to a 6% cash finders fee and issue up to 6% finders warrants exercisable at $0.55 per warrant share for a period of 18 months from the closing date.
The financing is expected to close on or before May 21, 2021, and is subject to all regulatory approvals including the approval of the TSX Venture Exchange. The securities issued in connection with this financing will be subject to a four-month hold period from the date of closing in accordance with applicable securities legislation.
In a statement, VR’s CEO, Dr Michael Gunning commented: “I wish to take this opportunity to sincerely thank two of our core, institutional shareholders for their support. This financing strategy strengthens VR’s business model in general, and more specifically our exploration programs in both Ontario and Nevada through 2021. In particular, these funds will allow us start planning immediately for follow-up drilling in September at Hecla-Kilmer, including the confirmation of key service company contracts necessary for the successful execution of that program. In the meantime, we continue to advance our various drill programs in Nevada, and we look forward to providing further updates in the future.”
VR Resources is an established junior exploration company focused on greenfields opportunities in copper and gold. The company is the continuance of four years of active exploration in Nevada by a Vancouver-based private company. The diverse experience and proven track record of its board in early-stage exploration, discovery and M&A is the foundation of VR.
The company focuses on underexplored, large-footprint mineral systems in the western United States and Canada, and is well-financed for its exploration strategies and corporate obligations. VR owns its properties outright, and evaluates new opportunities on an ongoing basis, whether by staking or acquisition.
Contact the author at jon.hopkins@proactiveinvestors.com