Tempus Resources Ltd (ASX:TMR, TSX-V:TMRR) has closed its Canadian non-brokered private placement, issuing 9.82 million ordinary shares at an issue price of C$0.07 per share for gross proceeds of C$718,000 (~A$762,309).
The company has also issued 352,940 flow-through (FT) shares at a price of $C0.085 per FT share.
Canadian flow-through shares give investors tax credits if their capital is used in qualifying mining and exploration projects.
The proceeds of these flowthrough shares will be used to incur eligible Canadian exploration expenses related to exploration of the Blackdome-Elizabeth Gold Project in British Columbia.
Funding exploration
Placement proceeds will be used for expenditures on the company’s exploration projects, particularly the Elizabeth Gold Project.
"We are currently completing a large soil sampling program at our Valle de Tigre Project in Ecuador and plan to resume drilling at our high-grade Canadian Elizabeth Gold Project within the next 6-8 weeks," said president and chief executive officer Jason Bahnsen.
"This placement tops up our existing funds in advance of the start of our 2022 program at the Elizabeth Gold Project in BC."
The 2022 exploration program at Elizabeth is fully permitted and on track to start by the end of Q2. Tempus plans to drill 8,500 metres to extend known high-grade gold mineralisation at Elizabeth.
Director participation
Demonstrating confidence in the company and its projects, Haywood Securities Inc, an entity associated with director Alexander Molyneux, intends to participate in the offering on the same terms with the purchase of 1.28 million ordinary shares and 642,857 warrants.
The issue of related party securities is subject to receipt of shareholder approval which will be sought at an upcoming general meeting.
Red Cloud Securities acted as a finder on behalf of the company under the offering.