Group Eleven Resources Corp said it has closed its non-brokered private placement, initially announced on February 3, 2022, and subsequently increased on February 4, 2022, totalling C$2,499,800 through the issuance of 20,831,666 units at a price of C$0.12 each.
Each unit consists of one common share and one half non-transferable common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share in the capital of the company at $0.18 per common share for 24 months from the date of issue.
Proceeds from the placement will be used to accelerate mineral exploration in Ireland, including the funding of drill programs at the company's Ballywire, Carrickittle and Tullacondra prospects at the PG West project (100%-interest), as well as, for general and administrative purposes.
READ: Group Eleven Resources upsizes non-brokered private placement for gross proceeds of up to C$2.5M, up from C$1.5M
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 of the placement.
Finder's fees of $68,220 are payable in cash on a portion of the placement to parties at arm's length to the company. In addition, 568,500 non-transferable finder's warrants are being issued. Each finder's warrant entitles a finder to purchase one common share at a price of $0.18 per common share for 24 months from the date of issue.
Under a subscription agreement, Michael Gentile subscribed for 3,016,666 units of the placement, for gross proceeds of $362,000. Immediately prior to entering into the subscription agreement, Gentile had ownership and control of 23,349,948 common shares and 5,000,000 warrants, representing an interest of 16.99% percent of the issued and outstanding common shares (on a non-diluted basis) and 19.90% on a partially diluted basis.
Upon completion of the placement, Gentile's ownership in the company increased to 26,366,614 common shares and 6,508,333 Warrants, representing 16.66% of the outstanding common shares (on a non-diluted basis) and 19.95% on a partially diluted basis.
Gentile has advised that the purchase was completed for investment purposes and depending on market and other conditions, or as future circumstances may dictate, from time to time, on an individual or joint basis, increase or dispose of some or all of the existing or additional securities he holds or will hold, or may continue to hold.
Group Eleven Resources is a mineral exploration company focused on advanced-stage zinc exploration in Ireland.
Contact the author at jon.hopkins@proactiveinvestors.com