Scottie Resources Corp. (TSX-V:SCOT) will undertake a non-brokered private placement to raise up to $2,300,000 to advance the company's mineral properties, for working capital and general corporate purposes.
The offering, subject to acceptance by the TSX Venture Exchange, will consist of 13,529,411 units at a price of $0.17 per unit, with each unit consisting of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $0.25 within two years of the offer closing.
The company said it will have the right to accelerate the expiry date of the warrants if the closing price of its shares is at a price equal to or greater than $0.32 for a period of 10 consecutive trading days.
READ: Scottie Resources posts promising gold intercepts from three drill holes at BC Blueberry Contact Zone
The explorer said it may pay finder's fees to parties at arm's length that have introduced the company to certain subscribers participating in the offering.
All securities issued under the offering will be subject to a resale restriction in accordance with applicable securities laws.
Scottie also announced the granting of an aggregate of 2,354,000 stock options to certain directors, officers, and consultants of the company at an exercise price of $0.18 per option, which expires five years from the date of issuance.
Scottie Resources is an exploration stage company engaged in the exploration and evaluation of gold and silver properties located in the “Golden Triangle” of British Columbia, Canada, an area that has shown great potential to host high-grade gold and silver deposits.
It owns a 100% interest in (or the option to acquire) the Blueberry, Domino, and past producing Scottie Gold Mine zones of the Scottie Gold Mine Project located in the heart of the Golden Triangle. In addition, the company owns 100% interest in the Georgia Project, Tide North and Sulu properties, and over 85% of the claims within the Cambria project, all located in the Stewart Mining Camp of the Golden Triangle.
Contact the author at jon.hopkins@proactiveinvestors.com