CR Capital Corp (TSXV: CIT) last night announced that it has closed the first tranche of its non-brokered private placement. The tranche was closed with a combination of subscriptions for both flow through units and hard dollar units, with total proceeds from the tranche amounting to $814,800.
Each flow through unit, offered under the placement at $0.10 per unit, consists of one flow through common share, and one half of a common share purchase warrant with an exercise price of $0.125 for a period of 18 months. The first tranche saw total gross proceeds of $350,000 for the flow through units offered, with the sale of 3.5 million units.
The hard dollar units, referred to as HD units, were sold at a price of $0.08 per unit, with each unit including one common share and one common share purchase warrant. Each warrant comes with an 18 month expiry and a conversion price of $0.10. Gross proceeds of $464,800 were raised in the first tranche from the sale of 5.81 million HD units.
Proceeds from the sale of the HD units will be used for exploration and general working capital purposes, while proceeds from the flow through units will be used strictly for “Canadian exploration expenses.”
It should also be noted that CR Capital’s CEO Brian Howlett subscribed to the offering, with his total position in the company now coming in at 9.50% on a partially diluted basis following the close of the financing.
CR Capital last traded at $0.25 on the TSX Venture.
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