Melkior Resources Inc said it has closed a non-brokered flow-through private placement for gross proceeds of C$840,000, subject to final TSX Venture Exchange (TSXV) approval.
The company said proceeds of the private placement will be used to conduct further exploration on its mineral properties.
Melkior noted that $640,000 of the financing was provided by two directors of the company.
In a statement, Jonathon Deluce, CEO of Melkior commented: “We are excited to close this financing as it puts the Company in a great position to consider potential acquisitions. With almost $3 million in our treasury and only 24 million shares outstanding, we look forward to continuing due diligence on various Projects with our goal of bringing in a new Melkior lead flagship asset ahead of the gold bull market resumption. We also look forward to announcing results from the current 3,700-meter drill program underway at Carscallen in the new year.”
READ: Melkior Resources to raise C$860,000 in a flow-through private placement
The company said it issued 2,100,000 common shares at a price of $0.40 per common share, with each such share issued as a 'Flow-Through Share' within the meaning of the Income Tax Act (Canada).
Kirkland Lake Gold has exercised its’ anti-dilution rights and subscribed for 200,000 common shares of the financing, it added
The company said it did not issue finders’ fees on this financing. All securities issued under the private placement will have a hold period of four months and a day from closing.
Melkior Resources is an exploration stage resource company with a strong partner in world-class mining jurisdictions.
The company’s flagship Carscallen Project is being advanced by Kirkland Lake Gold through a $110 million option/joint venture agreement. Melkior under 100% ownership is focused on advancing its Val D’Or, White Lake and Maseres Projects.
Kirkland Lake Gold currently owns approximately 6% of the company.
Contact the author at jon.hopkins@proactiveinvestors.com