Scottie Resources Corp said it has closed its previously announced brokered private placement financing under an agency agreement with Cormark Securities Inc, as lead agent, and Research Capital Corporation raising aggregate gross proceeds of C$5,008,000.
Under the terms of the offering, the company issued 10,000,000 flow-through common shares (Premium FT shares) at a price of C$0.30 each; 4,000,000 flow-through common shares (Traditional FT shares) at a price of C$0.25 each; and 4,800,000 non-flow-through common shares (HD shares) at a price of C$0.21 each.
The gross proceeds received by the company from the sale of all the FT shares will be used to incur "Canadian exploration expenses" that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) and "BC flow-through mining expenditures" (as defined in the Income Tax Act (British Columbia)) on the company's properties in British Columbia. The company said the qualifying expenditures will be renounced to the subscribers with an effective date no later than December 31, 2022.
READ: Scottie Resources inks agreement in connection with a 'best efforts' private placement for aggregate gross proceeds approximately $6M
All FT shares, HD shares, broker warrants and broker warrant shares issued and issuable under the offering are subject to a statutory hold period and may not be traded until August 23, 2022, except as permitted by applicable securities legislation. The offering is subject to the final approval of the TSX Venture Exchange.
Under the agency agreement, the agents received a cash commission of $300,480, representing 6.0% of the gross proceeds raised under the offering, and were issued 1,128,000 broker warrants, representing 6.0% of the number of FT shares and HD shares issued. Each broker warrant entitles the holder to purchase one common share at a price of C$0.30 each for a period of 24 months from the current date.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and application state securities laws.
Scottie owns a 100% interest in the high-grade, past-producing Scottie Gold Mine and Bow properties and has the option to purchase a 100% interest in Summit Lake claims which are contiguous with the Scottie Gold Mine property.
The company also owns 100% interest in the Georgia Project which contains the high-grade past-producing Georgia River Mine, as well as the Cambria Project properties and the Sulu property. Altogether Scottie Resources holds more than 52,000 hectares of mineral claims in the Stewart Mining Camp in the Golden Triangle.
The company's focus is on expanding the known mineralization around the past-producing mines while advancing near mine high-grade gold targets, with the purpose of delivering a potential resource.
All of the company's properties are located in the area known as the Golden Triangle of British Columbia which is among the world's most prolific mineralized districts.
Contact the author at jon.hopkins@proactiveinvestors.com