Fidelity Minerals Corp. (TSX-V:FMN) told investors that it has closed the non-brokered private placement announced on March 22, 2022, raising gross proceeds of C$992,500.
The company said it issued a total of 9,925,000 units at C$0.10 each, with each unit consisting of one common share and one transferable common share purchase warrant. Each warrant is exercisable into one additional share for $0.11 for six months from the closing date.
Of the total units issued, Fidelity said 3,500,000 were subscribed by its largest shareholder, Lions Bay Capital Inc, while management subscribed for 1,245,000 units.
READ: Fidelity Minerals arranges non-brokered private placement financing for total gross proceeds of up to C$950,000
Fidelity said it intends to use the net proceeds of the financing to advance its Peruvian exploration and community relation programs and for corporate working capital purposes.
In a separate announcement, Lions Bay noted that prior to the acquisition of the additional units, it owned an aggregate of 36,129,811 common shares in Fidelity, representing approximately 48.31% of its stock. Should it exercise all its warrants, including those just acquired, it said its shareholding would rise to 52.18%.
"We are very excited by the potential of the gold properties held by Fidelity,” Lions Bay executive chairman John Byrne said in a statement. “Lions Bay has been instrumental in the restructuring and strengthening of Fidelity's balance sheet. There is no doubt in our view that two of the properties, Las Huaquillas and Las Brujas, are world-class, tier-one epithermal gold and porphyry targets.”
Fidelity Minerals has a portfolio of high-quality mining assets in Peru, where it hopes to delineate major deposits to attract the interest of mid-tier and major mining companies.
Contact the author at stephen.gunnion@proactiveinvestors.com