Essex Minerals Inc has said it is arranging a non-brokered private placement of 44 million units of the company at a price of two cents per unit to raise gross proceeds of $880,000.
The company said it will use approximately 80% of the net proceeds from the proposed offering for general working capital purposes, its mineral project and mineral royalty generative activities and exploration expenditures on its existing mineral projects; approximately 15% will be used to pay management fees to company officers and approximately 5% on investor relations activities.
Each unit in the offering will consist of one common share and one share purchase warrant, with one whole warrant entitling the holder to purchase one additional common share of the company at a purchase price of five cents per warrant share for a period of 60 months from the date of closing.
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Finders' fees may be payable on all, or part, of the offering, and such finders' fees may be paid in shares in lieu of cash. Completion of the offering, including the issuance of any finders' shares, is subject to acceptance for filing by the TSX Venture Exchange.
Under Canadian securities laws, any securities issued in the offering will be subject to a hold period of four months plus one day from the date of issuance.
Essex Minerals is a Vancouver-based project generator focused on mineral exploration and mine development, with a particular emphasis on gold projects in Tier 1 jurisdictions.
Contact the author at jon.hopkins@proactiveinvestors.com