VanadiumCorp Resource Inc (TSX-V:VRB) said it has filed documents seeking final approval of its non-brokered private placement financing to raise gross total proceeds of $572,850.
On receipt of the TSX Venture Exchange’s approval, the company will issue 500,000, $0.12 flow-through units (FT units), and 5,128,500, $0.10 non-flow-through units (NFT units), for $572,850.
Net proceeds from the financing will be used for exploration and metallurgical testing on the company’s wholly-owned mineral properties and general corporate purposes.
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VanadiumCorp previously closed a $1,315,000 first tranche, issuing 4,793,333 FT units and 7,400,000 NFT units.
The placements were announced on July 30, 2022, and September 19, 2022.
Each FT unit consists of one flow-through common share of the company and one non-flow-through common share purchase warrant, with each NFT warrant exercisable to purchase an additional non-flow-through common share of the company for $0.18 for two years from the date of issue.
Each NFT unit consists of one common share of the company and one common share purchase warrant, with each warrant exercisable to purchase an additional common share of the company for $0.18 for two years from the date of issue.
On receipt of final approval, the company will have issued a total of 5,293,333 $0.12 FT units with each FT unit consisting of one flow-through common share of the company and one NFT warrant exercisable to purchase an additional non-flow-through common share at a unit price of $0.18 for two years and 12,528,500 $0.10 NFT units with each NFT unit consisting of one common share of the company and one warrant exercisable to purchase an additional common share at a unit price of $0.18 for two years for total gross proceeds of $1,888,050.
Pertaining to the closing of the first tranche, cash finders’ fees in the amount of $41,112 were paid and 353,600 broker warrants were issued.
The financing was effected with six insiders, subscribing for $60,000 or 500,000 FT units and $635,000 or 6,350,000 NFT units for an aggregate total of $695,000, and that portion of the financing a ‘related party transaction’ as such term is defined under MI 61-101 – Protection of Minority Security Holders in Special Transactions.
The company is relying on exemptions from the formal valuation requirement of MI-61-101 under sections 5.5(a) and (b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than 25% of the company’s market capitalization.
All securities issued pursuant to the financing will be subject to a four-month hold from the date of issue.
VanadiumCorp Resource has 100%-ownership of two strategic vanadium, titanium, and iron properties in Quebec. It also owns 100% of the newly patented hydrometallurgical process, the VanadiumCorp, Electrochem, Process Technology (VEPT), invented by Dr. Francois Cardarelli, that consists of digesting vanadiferous feedstocks into concentrated sulfuric acid.
Contact the author at jon.hopkins@proactiveinvestors.com