Trillium Gold (TSXV: TGM) is looking to raise funds as we draw closer to the spring exploration season. The firm this morning announced that it is looking to raise funds via the sale of a combination of units and flow through units.
Under the terms of the financing, the company will look to raise $5.0 million on a best efforts private placement basis. Units of the company will be sold at a price of $0.53 per each, and contain one share and one half of a purchase warrant. Flow Through units meanwhile will be sold at $0.60 per unit and contain one flow through share and one half of a purchase warrant. Finally, Charity FT units will be sold at $0.75 per each, and contain one charity flow through share and one half of a warrant.
Warrants under all three unit types will contain an exercise price of $0.80 per share and are valid for a period of two years from the date of issuance. An over-allotment option is also in play, which could expand the offering by up to $1.0 million.
Sponsored · PTX Metals Inc.
Proceeds from the flow through units will be used for the purpose of the exploration of the firms Red Lake properties. Proceeds from the sale of units will be used for the same purpose, as well as for general working capital purposes.
The offering is expected to close February 28.
The firm also indicated this morning that Russell Starr, CEO of the company, will be taking on the role of Chairman of the company on an interim basis following the resignation of Robert Schafer from the role.
Trillium Gold last traded at $0.57 on the TSX Venture.
FULL DISCLOSURE: Trillium Gold is a former client of Canacom Group, the parent company of The Deep Dive. Information for this briefing was found via Sedar and the companies mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
