Belmont Resources Ltd said it has received regulatory approval to close a private placement of $522,900 through the issuance of 7,470,000 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 its CBC copper/gold project, anticipated April 2022 along with exploration on its Greenwood gold camp projects and for working capital.
While Belmont intends to spend the proceeds from the financing as stated above, it said there may be circumstances where, for sound business reasons, funds may be reallocated at the discretion of the board.
Each unit consists of one common share of the company and one warrant exercisable at $0.10 in the first year and $0.15 in the second year.
READ: Belmont Resources plans to raise C$537,950 in a private placement
The warrants are 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 per share for 10 consecutive trading days. 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.
The securities have been issued with a hold period expiring July 19, 2022.
An insider of the company participated as to 170,000 units ($11,900). A finder's fee of $3,360 cash and the issuance of 48,000 warrants was paid/issued to PI Financial Corp.
Belmont Resources is engaged in the business of acquiring and re-developing past-producing copper-gold-silver mines in southern British Columbia (the Greenwood mining camp) and Northern Washington State (The Republic mining Camp).
This region is considered to have the highest concentration of mineralization and past-producing mines in western North America. Most mines in this area operated between the late 1800s to early 1900s.
By utilizing new exploration technology, new methods in geological modelling, and computer 3D modelling and analysis of historic and current data, the company is successfully identifying new areas of mineralization within, beneath and near these past-producing mines.
Contact the author at jon.hopkins@proactiveinvestors.com