BTU Metals Corp said it has closed its previously announced non-brokered private placement of 4,905,445 flow-through units at a price of $0.09 each for aggregate gross proceeds of $441,490.05.
The company said proceeds raised from the offering will be used for ongoing work programs at the Dixie Halo Project located in Red Lake, Ontario, contiguous to Great Bear Resources (TSX-V:GBR), as the company continues to drill at its high-grade gold targets at Dixie Creek and its VMS targets at TNT.
Each flow-through unit in the placement is comprised of one common share of the company issued on a flow-through basis and one-half of one common share purchase warrant to be issued on a non-flow-through basis.
READ: BTU Metals begins drilling on gold and copper targets at Pakwash North of Dixie Halo project in Ontario
Each whole warrant shall entitle the holder to acquire one common share of BTU at a price of $0.15 for a period of 18 months following the closing of the offering. The flow-through shares will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec).
Finders' fees of $12,250 and 136,111 finder's warrants were paid to arm's length parties. Finder's warrants entitle the finder to purchase one common share in the Company at a price of $0.15 for a period of 18 months from the date of closing.
The shares and warrants comprising the units are subject to a 4 month hold period expiring August 1, 2022. Closing of the offering is subject to final approval of the TSX Venture Exchange.
BTU Metals Corp is a junior, mining exploration company focused on its Dixie Halo project located in Red Lake, Ontario.
Contact the author at jon.hopkins@proactiveinvestors.com