VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) has announced a non-brokered private placement for gross proceeds of up to $4 million.
The company said it will use the gross proceeds of the financing for its mineral exploration business, and more specifically to solidify its plan for continued drilling at its Hecla-Kilmer critical metal discovery in northern Ontario.
The financing is a hard-dollar private placement, non-brokered, on a best efforts basis. It will consist of 25,000,000 units at a price of $0.16 per unit, with each unit consisting of one common share of the company and one-half of a common share purchase warrant, with each whole warrant entitling the holder to acquire one additional common share at an exercise price of $0.25 each for a period of 18 months from the closing date of the financing.
READ: VR Resources hits high-grade critical metals in new mineralized zone at its Hecla-Kilmer property in Ontario
The company said certain insiders of the company may participate in the financing. It added that it may pay up to a 6% cash finders fee in relation to the financing.
The financing is expected to close on or before September 30, 2022, and is subject to all regulatory approvals including the approval of the TSX Venture Exchange. The securities issued will be subject to a four-month hold period from the date of closing in accordance with applicable securities legislation.
The securities have not been registered under the US Securities Act of 1933, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States or to US persons (as such terms are defined in Regulation S under the US Securities Act) without registration under the US Securities Act and all applicable state securities laws or compliance with an exemption from such registration.
VR Resources is an established junior exploration company focused on greenfields opportunities in copper, gold and critical metals.
The company is the continuance of four years of active exploration in Nevada by a Vancouver-based private company. The diverse experience and proven track record of its board in early-stage exploration, discovery and M&A is the foundation of VR.
The company focuses on underexplored, large-footprint mineral systems in the western United States and Canada. VR owns its properties outright and evaluates new opportunities on an ongoing basis, whether by staking or acquisition.
Contact the author at jon.hopkins@proactiveinvestors.com