Empress Royalty Corp (TSX-V:EMPR, OTCQB:EMPYF) said it has now closed the second and final tranche of its non-brokered private placement of units, raising an additional US$1 million in gross proceeds through the sale of an additional 4,316,666 units.
With the second tranche closing, the company has raised a total of US$2 million (C$2.6 million) in gross proceeds from the sale of a total of 8,666,666 units at a price of 30 Canadian cents per unit. Strategic investor Rick Rule subscribed for 4.35 million units in the first tranche at 30 cents each for gross proceeds of $1 million.
The company said it intends to use the proceeds of the offering to evaluate potential royalty and streaming investment opportunities, to increase market awareness in the United States, and for general working capital purposes.
"The private placement is a fundamental step in the growth of Empress's vision and business strategy, and we welcome Rick Rule as a long-term strategic investor," said Alexandra Woodyer Sherron, chief executive officer and president of Empress Royalty in a statement.
READ: Empress Royalty completes first tranche of $2M private placement, welcomes Rick Rule as strategic investor
"The funds raised will be deployed to aggressively evaluate new potential opportunities to expand our diversified portfolio of revenue-generating gold and silver investments. We are focused on executing our strategy of becoming a leading financier to the junior mining industry and creating significant value for our shareholders," she added.
Each unit in the offering will comprise one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of 60 Canadian cents for a period of five years from the closing date of the offering.
In the event, the closing price (or closing bid price on days when there are no trades) of common shares on the TSX Venture Exchange exceeds $1.20 (Canadian) for a minimum of 20 consecutive trading days, the company may provide written notice to each holder of warrants requiring each holder to exercise such warrants within 30 days following the date of delivery of such written notice, after which the warrant will expire.
The common shares, warrants and warrant shares will be subject to a resale hold period under Canadian securities laws until four months from closing. The offering is subject to the final approval of the exchange.
Empress is a global royalty and streaming creation company providing investors with a diversified portfolio of 17 gold and silver investments. It is actively financing mining companies with development-stage and production-stage projects that require additional non-dilutive capital.
The company has strategic partnerships with Endeavour Financial and Terra Capital (AIM:TCA), which allow Empress to not only access global investment opportunities but also bring unique mining finance expertise, deal structuring and access to capital markets.
Empress is focused on executing its strategy of becoming a leading financier to the junior mining industry while creating significant value for its shareholders.
Contact the author at jon.hopkins@proactiveinvestors.com