Lithoquest Resources Inc (CVE:LDI) announced it will conduct a non-brokered private placement to raise up to $900,000 to advance its northern Ontario mineral portfolio.
The offering will consist of units priced at $0.10 and flow-through shares priced at $0.125 per flow through share.
Vancouver-based Lithoquest recently signed an option agreement with Landore Resources Canada Inc to acquire a 100% interest in the Miminiska Gold Project and the Keezhik Gold Project, both of which are located in northwest Ontario.
READ: Lithoquest Resources inks option deal to acquire two high-grade gold projects in Ontario
The company said the projects are situated within the Miminiska-Fort Hope greenstone belt and host drill-confirmed gold mineralization that is similar in style to the nearby Musselwhite gold mine owned by Newmont Mining Corporation (NYSE:NEM).
Each unit will consist of one share and one-half warrant, with each whole warrant entitling the holder to acquire an additional share at an exercise price of $0.15 for a period of 24 months.
The offering is available to accredited investors, family members, close friends and associates of directors and officers, purchasers who have obtained suitability advice from registered investment dealers and existing shareholders.
The offering is not subject to a minimum amount and the maximum offering is four million units and four million flow through shares for gross proceeds of $900,000. If the offering is over-subscribed, subscriptions will be accepted at the discretion of the company and subject to the approval of the Exchange, Lithoquest said, meaning it is possible that a subscriber's subscription may not be accepted by the company even though it is received within the offering period unless the company determines to increase the size of the offering.
Shareholders of record as of May 28, 2021 are eligible to participate under the Existing Shareholder Exemption. To rely upon the Existing Shareholder Exemption, the subscriber must have been a shareholder of the company on the record date and continue to hold shares until the date of closing of the offering; be purchasing the shares as a principal, and either may not subscribe for more than $15,000 of securities from the company in any 12-month period or have received advice from a registered investment dealer regarding the suitability of the investment.
The offering may be closed in one or more tranches as subscriptions are received. The minimum subscription amount is for a combined dollar amount of $2,000.
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