Group Eleven Resources Corp has upsized its previously announced non-brokered private placement to raise gross proceeds of up to C$2.5 million, from up to C$1.5 million previously, via the sale of up to 20,833,333 units of the company at an unchanged price of $0.12 per unit.
Each unit will consist of one common share and one half non-transferrable common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share in the capital of the company at $0.18 per share for 24 months from the date of issue.
The company reiterated that the proceeds will be used for mineral exploration in Ireland, including at its Ballywire zinc prospect at the PG West project (100%-interest), as well as for general and administrative purposes.
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The placement is subject to regulatory approval and all securities to be issued are subject to a hold period under applicable Canadian securities legislation that expires four months and one day after the closing date.
Group Eleven noted that Michael Gentile currently holds 23,349,948 common shares and 5,000,000 share purchase warrants, with each warrant entitling Gentile to purchase one additional common share upon payment of additional consideration to the company. These common shares and warrants represent approximately 16.99% of the company's issued and outstanding shares on an undiluted basis and approximately 19.90% of the Company's issued and outstanding shares on a partially diluted basis.
It said Gentile has agreed to subscribe for up to 14.75% of the placement which, in the event the company issues the full 20,833,333 units, which would result in him subscribing for 3,072,916 units of the placement for aggregate cash consideration of $368,750
Following completion of the placement, Gentile would beneficially own and control, an aggregate of 26,422,864 common shares and 6,536,458 warrants, representing approximately 16.99% of the company's issued and outstanding shares an undiluted basis and approximately 19.99% of the company's issued and outstanding shares on a partially diluted basis.
The company noted that the shares were acquired by Gentile for investment purposes and he has a long-term view of the investment and may acquire additional common shares of the company either on the open market or through private acquisitions or sell common shares of the company on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
The ownership percentages of common shares described are based on the company having 137,469,836 shares outstanding as of February 3, 2022, and 149,969,836 shares outstanding upon completion of the offering.
Group Eleven Resources is a mineral exploration company focused on advanced-stage zinc exploration in Ireland.
Contact the author at jon.hopkins@proactiveinvestors.com