VR Resources Ltd has announced a non-brokered flow-through private placement in order to confirm funds for a drill program planned for next month on its Hecla-Kilmer Critical Metals discovery in northern Ontario.
The financing will consist of 5,000,000 units at a price of $0.18 per unit for gross proceeds of up to $900,000. Each unit will consist of one flow-through common share of the company and one-half of a non-flow-through common share purchase warrant, with each whole warrant entitling the holder to acquire one additional non-flow-through common share of the company at an exercise price of $0.25 per common share for a period of 18 months from the closing date of the financing.
VR said it will use the gross proceeds of the financing for mineral exploration on its Hecla-Kilmer property in northern Ontario, and more specifically for a drill program planned for this fall on its Hecla-Kilmer critical metals discovery in northern Ontario.
READ: VR Resources hits high-grade critical metals in new mineralized zone at its Hecla-Kilmer property in Ontario
The company said this is now considered delineation drilling at this stage. The specific objective is to complete follow-up drill holes on the 247 metre intersection of 1.01% TREO starting at surface in Hole 13 completed in May, and in two other areas located 1.5 and 2.5 kilometers (km) to the south, respectively, with grades of up to 3.3% TREO locally.
The follow-up drill program is set to commence three weeks from now, in early October, it added, with the campsite at Otter Rapids already in-place and ready, established for the company's previous drill programs at Hecla-Kilmer, and largely unchanged because of its ideal location with regard to rail, highway and grid power infrastructure just 23 km to the east of the project.
The company said it may pay up to a 6% cash finder's fee to an arm's length party in connection with the financing. The closing date for the financing is expected to occur on or before September 23, 2022.
The financing is subject to all regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued in connection with the financing will be subject to a four-month hold period from the closing date.
The securities have not been registered under the US Securities Act of 1933, as amended, or any US 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 critical metals, copper and gold. The company seeks to create value by recognizing the shift in global resource demand related to the emergence of new, sustainable technologies in the transitioning green economy.
VR 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