Ridgeline Minerals (TSX-V:RDG, OTCQB:RDGMF) has said it proposes to amend the terms of a previously-announced private placement by changing the securities offered from 10 million common shares to up to 12.5 million units at a price of C$0.20 per unit, with each unit consisting of one common share and one-half of a warrant.
The proposal is subject to regulatory approval.
Each whole warrant entitles the holder to purchase one additional common share of the company at a price of $0.30 per share for a period of 24 months.
READ: Ridgeline Minerals announces non-brokered private placement of up to 10,000,000 common shares at a price of $0.25 each
The proceeds from the sale of the units will be used to fund Ridgeline’s exploration programs and for general working capital.
Ridgeline said certain of its directors and officers may acquire securities under the private placement. Any such participation will be considered a "related party transaction" as defined under Multilateral Instrument 61-101 (MI 61-101).
The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25% of the company's market capitalization, according to Ridgeline.
The Vancouver-based company said it may pay a finder's fee in connection with the private placement and this financing is subject to the approval of the TSX Venture Exchange. Ridgeline said it anticipates closing of the private placement as soon as practicable, subject to receipt of all necessary regulatory approvals.
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