Max Resource Corp (TSXV: MXR) has increased its previously announced private placement to $6.0 million as of this evening. The increase in size is significant, given that the placement as announced in mid September was to be for nearly half that figure at $3.4 million, suggesting institutional investors may have shown deep interest in the placement.
Originally announced on September 18, the financing was to be for $3.4 million, before it was increased only five days later on September 23. The increase pegged the financing at $4.8 million, before this third increase ballooning the offering to $6.0 million. The revised placement will see a total of 25.0 million units of the company issued in the financing.
Units under the offering are priced at $0.24 per unit, with each unit containing one common share and one half common share purchase warrant. Each whole warrant is exercisable at a price of $0.40 per share, with an expiry of twelve months from the date of issue.
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Additionally, an acceleration clause is attached to the warrants, wherein if the company clsoes above $0.80 for ten consecutive days, the company can accelerate the expiry of the warrants. Under an acceleration scenario, warrants would expire thirty days from the date of the announcement of the acceleration taking place.
Proceeds from the placement are to be used for exploration and general working capital purposes. Notably, the company is working towards developing its two major projects – the flagship copper-silver Cesar project in Colombia, and the RT Gold property in Peru which it just recently acquired.
Max Resource Corp last traded at $0.32 on the TSX Venture.
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