Essex Minerals Inc has announced that, further to its news release of September 21, 2022, it has closed the final tranche of its non-brokered private placement, raising an aggregate of $880,000 in gross proceeds.
The company said it issued 44,000,000 units under the private placement at a price of $0.02 per unit. Each unit consists 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 $0.05 per warrant share for a period of 60 months from the date of closing.
The net proceeds from the financing will be used by Essex for general working capital purposes, its mineral project and royalty-generative activities and exploration expenditures on its existing mineral projects.
READ: Essex Minerals closes second tranche of its non-brokered private placement for $75,000
Approximately 15% of the proceeds will be utilised in payments to officers and directors as remuneration for management of the Company in the normal course of business, approximately 5% of the proceeds will be utilised in investor relations activities, including a contract renewal with the company's existing investor relations consultant Harbor Access LLC, and the balance of the proceeds will be utilised in its mineral project and royalty generative activities, costs related to the company's existing mineral properties and general working capital.
The company said it is currently examining a number of new exploration and royalty acquisition opportunities, but no specific expenditure representing more than 10% of the gross proceeds has currently been agreed.
A company associated with the company's CEO and president subscribed for 955,000 units, it noted
The company paid finder's fees in connection with the placement comprising an aggregate of $24,290 and 1,214,500 finder's warrants to Canaccord Genuity (TSX:CF, LSE:CF) Corp and $7,000 and 350,000 finder's warrants to Primary Capital Inc. Each finder's warrant is exercisable into one common share at $0.05 for 60 months.
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