Renforth Resources Inc (CSE:RFR, OTCQB:RFHRF) announced that it has closed the first tranche of its private placement designed to raise up to C$1 million to fund a new drilling program at its Surimeau property.
The Ontario-based company completed a first closing of the announced non-brokered private placement for gross proceeds of C$688,800 from the sale of 200,000 non-flow-through units of the company at a price of C$0.035 per unit and 17,045,000 flow-through units at a price of C$0.04 per flow-through unit.
Proceeds from the financing will be used for drilling on Renforth's Surimeau property, specifically, the 20-kilometre-long Victoria and 9-kilometre-long Lalonde, nickel polymetallic structures.
READ: Renforth Resources to raise up to C$1M for Surimeau exploration
The company is planning to start its drilling program in the second half of November.
Under the terms of the placement, each unit consisted of one share and one warrant, while each flow-through unit consisted of one share to be issued as a flow-through share, and one half of one warrant that entitles the holder to purchase one share at a price of C$0.06 for a period of 24 months following the distribution date.
In connection to the financing, the company paid a cash commission of $39,000 and issued 1,050,000 finders warrants. The finders warrants are exercisable at a price of C$0.06 for a period of 24 months.
Renforth said it expects to close the second tranche in the next two weeks.
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