Sanatana Resources Inc. (TSX-V:STA) said it has closed the first tranche of its non-brokered private placement for gross aggregate proceeds of approximately $2,065,000.
The first tranche consisted of 13,766,667 units of the company at a price of $0.15 per unit.
The company said that proceeds of the private placement will be used to fund the upcoming drilling and exploration of the Oweegee Dome project and for general working capital.
In a statement, Peter Miles, the company's CEO commented: "With the close of the first tranche of this financing, Sanatana will have in excess of $4,000,000 on hand and expects to begin its 2022 exploration program June 1st with drilling commencing around July 1st. All aspects of the exploration program are in place including over 20 staff, camp facilities, drill and geophysical contractors and helicopter support. We look forward to commencing exploration shortly".
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Each unit issued in the first tranche consisted of one common share of the company and one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one common share of the company at a price of $0.20 for a period of two years following the closing of the first tranche.
The company noted that Simon Anderson, Anthony Dutton, Thomas Obradovich and Rose Zanic, insiders of the company, subscribed for 333,333 units ($49,999.95), 333,334 units ($50,000.10), 500,000 units ($75,000), 100,000 units ($15,000) respectively, under the private placement.
In connection with the private placement, the company paid aggregate cash finder's fees totalling $18,000 and issued 120,000 finder's warrants to certain qualified arm's length finders. Each finder's warrant is exercisable into one common share at an exercise price of $0.20 per finder's warrant share on or before May 11, 2024.
All securities issued under the private placement are subject to a statutory hold period expiring on September 12, 2022, in accordance with applicable securities legislation.
Sanatana Resources is a mineral exploration and development company focused on high-impact properties in Canada.
With an award-winning technical team and experienced management and board of directors, Sanatana is based in Vancouver and is listed on the TSX Venture Exchange.
Contact the author at jon.hopkins@proactiveinvestors.com