Adyton Resources (TSX-V:ADY, OTCQB:ADYRF) Corporation revealed that it has a letter engagement with Eight Capital, under which Eight Capital will offer 80 million units of the company on sale on a private placement basis at an issue price of $0.05 per unit, for aggregate gross proceeds of up to $4 million, subject to standard regulatory approvals.
The Brisbane, Australia-based company which has a portfolio of projects in Papua New Guinea where it is exploring for copper and gold, said it plans to use the funds for exploration at its Fergusson Island and Feni Island projects. Some of the net proceeds will also be used as working capital and for general corporate purposes, said the company.
Each unit will be comprised of one share and one share purchase warrant. Each warrant will entitle the holder to buy one share at an exercise price of $0.06 per share, for a period of 36 months following the closing of the offering.
READ: Adyton reports hitting significant copper in Feni Island maiden drilling program
The company has granted Eight Capital an over-allotment option to distribute up to an additional 15% of the units at the issue price, exercisable in whole or in part at any time within 48 hours prior to the closing of the offering.
Adyton Resources (TSX-V:ADY, OTCQB:ADYRF) said the closing date of the offering is scheduled to be on or about December 21, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
The company’s mineral exploration projects are located on the Pacific Ring of Fire which hosts several world class copper and gold deposits.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive