Tocvan Ventures Corp said it has closed its previously announced non-brokered private placement of units for gross proceeds of $360,803.
Proceeds from the offering will be used to advance the company's Pilar and El-Picacho Au-Ag (gold-silver) projects in Sonora, Mexico. At Pilar, drill results are pending to expand and define the extent of the established Main Zone, while continuing to explore several new prospective trends including 4-T. Advanced metallurgical studies are underway for bulk material across the property and will evaluate the recovery of gold and silver across mineralized oxide zones exposed at surface.
The offering consisted of the issuance of an aggregate of 481,071 units at a price of $0.75 per unit. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $1.35, for a period of 18 months from the closing of the offering.
READ: Tocvan Ventures says drill results at Pilar project in Mexico are pending
In connection with the offering, the company paid aggregate cash commissions to arm's length finders who assisted with the offering of approximately $14,322 and issued 19,096 finder warrants
Each finder warrant is exercisable at a price of $0.75 per common share for a period of 18 months from the closing of the offering.
If during any 10 consecutive trading days occurring after four months and one day has elapsed following the closing date of the offering, the average closing sales price of the common shares (or the closing bid, if no sales were reported on a trading day) as quoted on the Canadian Securities Exchange (CSE) is greater than or equal to $1.60 per common share, the company may provide notice in writing to the holders of the warrants by issuance of a press release that the expiry date of the warrants will be accelerated to the 30th day after the date on which the company issues such press release.
The offering is subject to all necessary regulatory approvals including acceptance from the CSE.
All securities issued in connection with the offering will be subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
Tocvan Ventures is a well-structured exploration development company created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success.
The company has two exciting opportunities in Sonora, Mexico: the Pilar Gold-Silver project and the El Picacho Gold-Silver project.
Contact the author at jon.hopkins@proactiveinvestors.com