Lithoquest Resources Inc (CVE:LDI) (OTCMKTS:CWVWF) (FRA:28U0) announced that, due to “significant demand” from investors, it has decided to increase the size of its previously announced non-brokered private placement.
It is selling up to 10 million company units, at a price of C$0.10 per unit, and up to 4 million flow-through company shares, at a price of C$0.125 per share, for total gross proceeds of up to C$1.5 million.
Lithoquest said it intends to use the gross proceeds from the offering to advance its gold and base metal properties in northern Ontario and for general working capital purposes.
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.
READ: Lithoquest Resources is branching out beyond diamonds to seek promising gold and base metals deposits
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 company also noted that 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.
Shareholders of record as of May 28, 2021 are eligible to participate under the Existing Shareholder Exemption. To rely upon 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 is scheduled to close on or around June 18.
Lithoquest Resources, formerly Lithoquest Diamonds Inc, changed its name in late 2020 after placing its North Kimberley Diamond Project in Western Australia on care and maintenance in July until financing conditions improve in the diamond industry.
The company recently signed an option agreement to acquire a 100% interest in the Miminiska Gold Project and the Keezhik Gold Project, both of which are located in northwest Ontario.
Contact Sean at sean@proactiveinvestors.com