Great Atlantic Resources Corp (TSX-V:GR) said it received gross proceeds of C$475,000 for its non-brokered private placement, while it issued 13,571,428 units.
The Vancouver-based company said the placement was oversubscribed by $25,000.
The units are comprised of one common share at a price of $0.035 and a full share purchase warrant, which may be exercised for a period of 60 months at a price of $0.05 per share.
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Great Atlantic said that approximately 60% of the aggregate proceeds raised will be used for exploration expenditures related to the company's Golden Promise gold property in Newfoundland and work on its other properties located in Newfoundland and New Brunswick. Approximately 30% will be used for working capital and general corporate purposes and 10% will be used to pay management fees to company officers and directors.
The company also said it paid a cash commission of $7,000 to Glores Securities Inc, $7,761 to Canaccord Genuity (TSX:CF, LSE:CF) Corp, $2,800 to EMD Financial Inc, and $560 to Sprott Capital Partners.
The company also issued 200,000 finder warrants to Glores Securities, 221,760 finder warrants to Canaccord Genuity (TSX:CF, LSE:CF) and 64,000 finder warrants to EMD Financial. The finder warrants issued to Glores Securities and Canaccord Genuity have the same terms as the private placement warrants and the finder warrants issued to EMD Financial are valid for two years, according to Great Atlantic.
All securities issued in connection with the offering will be subject to a hold period of March 17, 2023, according to Great Atlantic, and the closing of the private placement financing is subject to final approval by the TSX Venture Exchange.
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