RooGold Inc (CSE: ROO) this morning announced the closing of a second tranche of its private placement. With the closing of the second tranche, the financing is now complete, having raised gross proceeds of $3.2 million.
The financing itself saw units of the company sold at a price of $0.25 per unit, with each unit consisting of one common share and one half of a purchase warrant. Warrants are valid for a period of two years from the date of issuance and contain an exercise price of $0.40 per share.
Warrants under the financing also have an acceleration clause, enabling the company to force the exercise of warrants should the equity trade above $0.50 per share for a period of 30 consecutive days.
Proceeds from the financing are to be used for the first phase of exploration at its Australian properties, as well as for marketing, working capital, and as a reserve for exploration on properties that have been conditionally acquired.
RooGold last traded at $0.21 on the CSE.
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