Belmont Resources Inc (TSX-V:BEA) has announced that it will raise C$537,950 in a private placement financing by issuing 7,685,000 company units at a price of $0.07 each.
The company said it intends to use the proceeds of the financing for a drill program on the CBC project, along with exploration on its Greenwood gold camp projects and for working capital.
Each unit of the financing will consist of one company common share plus one warrant, which is exercisable at $0.10 in the first year and $0.15 in the second year.
READ: Belmont Resources hits high-grade gold in new gold zone at its Lone Star JV in Washington State
The warrants will be subject to an accelerated expiry date, which comes into effect at such time as the trading price of the company’s shares closes at or above $0.25 for 10 consecutive trading days. In such event, the company may accelerate the expiry date of the warrants by disseminating a press release and providing the warrant holders with notice that such warrants will expire on the 30th day thereafter.
Belmont also noted that a company insider will subscribe for 170,000 units of the private placement.
All securities issued will be subject to a four-month and one day hold period from closing.
As well, the company reported that it has granted 1,025,000 incentive stock options to certain Belmont Resources directors and officers in accordance with its current stock option plan. Each option is exercisable into one company common share at a price of $0.10 per share for a period of five years from the date of grant.
Belmont Resources is engaged in the business of acquiring and re-developing past-producing copper-gold-silver mines in southern British Columbia and northern Washington State. This region is considered to have the highest concentration of mineralization and past-producing mines in western North America.
Contact Sean at sean@proactiveinvestors.com