Max Resource Corp (TSXV: MXR) has seen famed mining financier Eric Sprott take down $1.92 million in their latest placement, which closed on an oversubscribed basis this morning. The financing saw a total of $6.5 million raised in gross proceeds at a price per unit of $0.24.
Each unit sold under the financing consisted of one common share and one half warrant. Each whole warrant contains an exercise price of $0.40, with an expiry of 12 months from the date of issue which is also subject to an acceleration clause. Should the company see its equity price close above $0.80 for a period of ten consecutive trading days, the company can accelerate the expiry of the shares upon providing thirty days notice.
Eric Sprott has taken down a total of 8,000,000 units of the financing through his numbered company. Gross proceeds from his purchase total out at $1.92 million, resulting in him owning 9.6% of the outstanding shares, or 13.7% on a partially diluted basis assuming the exercise of the warrants.
Proceeds from the financing are to be used for exploration as well as general working capital.
Max Resource Corp last traded at $0.29 on the TSX Venture.
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