Ascendant Resources Inc. (TSX:ASND) said it has arranged a non-brokered private placement for aggregate gross proceeds of approximately $2 million.
The company intends to issue approximately 8.33 million units of the company at a price of 24 cents per unit. Each unit comprises one common share of the company and one-half of one common share purchase warrant, with each warrant exercisable to acquire one common share at a price of 40 cents for a 24-month period following the closing date of the offering.
The company intends to use the net proceeds from the offering to advance its flagship Lagoa Salgada project as well as for working capital and general corporate purposes.
READ: Ascendant Resources posts preliminary economic assessment for Portugal project, which shows low-cost, high-margin underground operation
The company expects to close the offering on or about October 27, 2021, and may elect to close the offering in one or more tranches. The offering is subject to customary conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange, as well as the satisfaction of other customary closing conditions.
The units will be offered on a private placement basis under the accredited investor exemption or other available and agreed-upon exemptions from prospectus requirements. The units, including all underlying securities thereof, will have a hold period of four months and one day from the date of issue.
Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS (volcanogenic massive sulphide) project located on the prolific Iberian pyrite belt in Portugal. Through focused exploration and aggressive development plans, the company aims to unlock the inherent potential of the project, maximizing value creation for shareholders.
Contact the author at jon.hopkins@proactiveinvestors.com