Idaho Champion (CSE:ITKO, OTCQB:GLDRF) Gold Mines Canada Inc said it has closed the first tranche of its private placement offering, issuing 11,079,210 units for gross proceeds of C$553,960.50.
In total, the non-brokered private placement is for up to 20,000,000 units at a price of C$0.05 per unit for gross proceeds of up to C$1,000,000.
Each unit in the placement will consist of one common share and one non-transferable purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of C$0.10 for a period of 24 months from the date of issue.
The company said the proceeds of the financing will be used for the funding of an exploration program at its cobalt projects in Idaho, USA, and for general working capital purposes.
READ: Idaho Champion initiates strategic review of its property portfolio to maximize shareholder value
In connection with the private placement, the company paid a cash finders' fee of C$10,800 and issued 216,000 finders' warrants, representing 8% cash and 8% non-transferable warrants.
Completion of the private placement and payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange (CSE).
The participation by three of the directors of the company in the financing constitutes a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions.
In accordance with applicable Canadian securities laws, all securities issued under the private placement with be legended with a hold period of four months and one day from the date of issuance.
Idaho Champion (CSE:ITKO, OTCQB:GLDRF) is a discovery-focused exploration company that is committed to advancing its 100%-owned highly prospective mineral properties located in Idaho, United States.
The company is vested in Idaho with the Baner Project in Idaho County, the Champagne Project located in Butte County near Arco, and four cobalt properties in Lemhi County in the Idaho Cobalt Belt.
Contact the author at jon.hopkins@proactiveinvestors.com