Scottie Resources Corp has announced the closing of its previously announced fully-subscribed non-brokered private placement of 18,823,530 units at a price of $0.17 each for gross proceeds of $3.2 million.
The company said the proceeds of the offering will be used for exploration on its mineral properties, working capital, and general corporate purposes.
Each unit in the offering consists of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at an exercise price of $0.25 each for a period expiring two years from the closing date of the offering.
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If the closing price of the company's common shares is at a price equal to or greater than $0.32 for a period of 10 consecutive trading days, the company will have the right to accelerate the expiry date of the warrants by giving written notice to the holders that the warrants will expire on the date that is not less than 30 days from the date notice is provided by the company to the warrant holders.
In connection with the closing of the offering, the company paid finder's fees of 6% cash and 6% finder's warrants, consisting of $139,281 in cash and the issuance of 819,300 finder's warrants to the following finders: Blue Lakes Advisors SA, Canaccord Genuity (TSX:CF, LSE:CF) Corp, Cormark Securities Inc and Research Capital Corporation. Each finder's warrant will entitle the holder to purchase one share of the company at a price of $0.25 each exercisable for a period expiring two years following the closing date of the offering.
All securities issued in the offering will be subject to a resale restriction expiring February 8, 2023, in accordance with applicable securities laws.
Scottie Resources owns a 100% interest in the high-grade, past-producing Scottie Gold Mine and Bow properties and has the option to purchase a 100% interest in Summit Lake claims which are contiguous with the Scottie Gold Mine property. It also owns 100% interest in the Georgia Project which contains the high-grade past-producing Georgia River Mine, as well as the Cambria Project properties and the Sulu property.
All of the company’s properties are located in the area known as the Golden Triangle of British Columbia which is among the world’s most prolific mineralized districts.
Contact the author at jon.hopkins@proactiveinvestors.com