Victory Resources Corp (CSE:VR, OTC:VRCFF) has said it is undertaking a non-brokered private placement of up to $2 million, consisting of both flow-through (FT) and non-flow-through (NFT) units.
The company said the net proceeds from the sale of NFT units will be used for working capital requirements and other general corporate purposes. The gross proceeds from the sale of FT units will be used for exploration expenses on the company's mining projects as permitted under the Income Tax Act (Canada).
The FT units are being offered at a price of 5 cents and consist of one common share and one common share purchase warrant exercisable at 7 cents for a period of 24 months.
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Each FT unit will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada). The corporation reserves the right to accelerate the warrant expiry period upon 30 days of notice if the shares trade at 15 cents for a period of 10 consecutive days, including days where no trades occur.
The NFT units consist of one common share of the corporation offered at a price of 2.2 cents and one common share purchase warrant exercisable for a period of 24 months at an exercise price of 5 cents. The company said it reserves the right to accelerate the warrant expiry period upon 30 days of notice if the shares trade at 10 cents for a period of 10 consecutive days, including days where no trades occur.
The company said it may pay qualified finders commissions of 8% and 8% finder's warrants in respect to the NFT unit offering, and a commission of 8% in respect to the FT unit offering.
Victory Resources is a publicly traded diversified investment corporation with mineral interests in North America. The company is also actively seeking other exploration opportunities.
Contact the author at jon.hopkins@proactiveinvestors.com