VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) said it has closed its previously announced non-brokered flow-through private placement consisting of 2,631,579 flow-through shares (FT shares) at a price of $0.38 per flow-through share for gross proceeds of $1 million.
The company also said it was informed by the Ontario Ministry of Northern Development, Mines, Natural Resources and Forestry (MNDM) on October 29, 2021, that its application to the Ontario Junior Exploration Program, OJEP, was successful, awarding VR a maximum $200,000 grant, conditional only on the completion of the template investment agreement which governs the program grants.
In a statement, the company's CEO, Michael Gunning commented: "This strategic placement of FT funds, in combination with the OJEP grant will allow us to move forward and secure a drill for the upcoming winter season to follow up on our recent discovery of critical metals within the large fluorite-carbonate hydrothermal breccia system at H-K. The final geochemical data yet to be received from the drill program this fall will be integrated with all of our existing geochemical data, mineral data and geophysical models in order to prioritize targets for the follow-up drill program planned for this winter."
READ: VR Resources uncovers new rare earths and critical metals system in Canada at Hecla-Kilmer project in Ontario
"With thanks to our largest, and core FT shareholder for this placement, and to MNDM for awarding VR in the OJEP program, I will look forward to providing further updates as our work at Hecla-Kilmer advances. Our goal for the follow-up drilling will be twofold: 1. Identify and test the structures which control the large volume of REE + Nb mineralization discovered in 2021, and; 2. Continue to evaluate the copper and gold potential of integrated targets that remain untested elsewhere in the large and multiphase alkaline complex with carbonatite at H-K," he added.
In connection with the private placement, the company said it paid a cash finders fee of $60,000.00, issued 157,894 finders share purchase warrants exercisable at $0.50 per warrant for a period of 18 months from the closing date.
The securities that were issued are subject to a four-month hold period under Canadian securities law. Use of proceeds will be for exploration on the company’s Hecla-Kilmer property in northern Ontario.
The securities have not been registered under the US Securities Act of 1933, as amended, or any US state securities laws, and may not be offered or sold in the United States or to US persons without registration under the US Securities Act and all applicable state securities laws or compliance with an exemption from such registration.
VR Resources is an established junior exploration company focused on greenfields opportunities in copper and gold. It 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