Newrange Gold Corp. (TSX-V:NRG, OTCQB:NRGOF) said it is arranging a non-brokered private placement to raise gross proceeds of up to $10,080,000
The placement is anticipated to close on or about November 25, 2022, following a ‘one-new-for-six-old’ share consolidation to be voted upon by shareholders at the annual general meeting on November 23, 2022, and as such, will be priced at the post-consolidation share price of $0.18.
The placement will consist of up to 56,000,000 units, with each unit comprising one common share and one-half share purchase warrant, whereby each whole warrant shall be convertible into an additional share at an exercise price of $0.27 for a period of 36 months from the date of issuance.
READ: Newrange Gold inks definitive deal to acquire the Coricancha mine in Peru
The company will have the right to seek an accelerated exercise of the warrants if the price of the shares trade in excess of C$0.40 for 10 consecutive trading days.
The net proceeds raised from the offering will be used for the acquisition of a 100% interest in the Coricancha Gold-Silver-Copper-Lead-Zinc Mine in Central Peru, continued care and maintenance costs, exploration and development of the mine and general working capital.
All securities to be issued will be subject to a four-month hold period from the date of issuance and subject to TSX Venture Exchange approval.
Newrange is currently focused on district-scale exploration for precious metals in the prolific Red Lake District of northwestern Ontario. The past-producing high-grade Argosy Gold Mine is open to depth, while the adjacent North Birch Project offers additional blue-sky potential. The proposed acquisition of the Coricancha Mine in Peru will give the company a renewed focus on mine site exploration, development and production but the company still intends to advance the Red Lake projects.
Contact the author at jon.hopkins@proactiveinvestors.com