VR Resources Ltd (TSX-V:VRR, OTCQB:VRRCF) said it has closed the second and final tranche of its previously announced non-brokered flow-through (FT) private placement for aggregate gross proceeds of $2,256,060.
In connection with the second tranche closing of the FT financing, the company issued an additional 1.67 million FT units. In addition to the FT financing, the company also completed the second and final closing of its non-brokered hard dollar private placement.
The closing of the financings is in concert with the start-up of the fall drill program to follow-up on the company's discovery of high-grade REE critical metal mineralization on its Hecla-Kilmer property in Northern Ontario.
READ: VR Resources says fall drill program is underway at its Hecla-Kilmer critical metals discovery in Ontario
The breakdown of the offerings is:
- FT financing, consisting of 5,051,667 units at a price of 18 cents per FT unit for total gross proceeds of $909,300;
- Hard dollar financing, consisting of 8,417,250 units at a price of 16 cents per unit for total gross proceeds of $1,331,600.
Each of the units consists of one flow-through common share and one non-flow-through common share, respectively, and one-half of a common share purchase warrant, with each whole warrant entitling the holder to purchase an additional non-flow-through common share at 25 cents for a period of 18 months from the respective closing dates of the financings.
In connection with the financings, the company paid aggregate cash fees totalling $50,772.00 to certain finders.
The company has said it will use the gross proceeds from the hard dollar financing for its mineral exploration business, including active exploration on its various mineral properties held in Ontario, Canada, and Nevada, USA. VR will use the gross proceeds from the FT 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.
The securities that were issued under the financings are subject to a four-month hold period commencing from the respective closing dates of such financings.
VR Resources is an established junior exploration company focused on greenfields opportunities in critical metals, copper and gold. VR is the continuance of four years of active exploration by a Vancouver-based private company. The diverse experience and proven record of its board in early-stage exploration, discovery, and M&A (mergers and acquisitions) is the foundation of VR.
The company is well financed for its corporate obligations and mineral exploration plans, focused on underexplored large-footprint mineral systems in the Western United States and Canada. VR owns its properties outright and evaluates new opportunities on an continuing basis, whether by staking or acquisition.
Contact the author at jon.hopkins@proactiveinvestors.com