Vulcan Minerals Inc. (TSXV: VUL), announced today a non-brokered private placement deal that will see the company look to raise gross proceeds of $4 million. The financing will see the sale of 20 million units of the company.
Under the terms of the financing, each unit will consist of one common share and one common share purchase warrant exercisable at $0.30 for a period of 30 months following the close of the financing. An acceleration clause is also present on the warrants, enabling the accelerated expiry of the warrants in the event that the equity trades above $0.50 for a period of ten days on a volume weighted basis.
The company also announced that Eric Sprott will also be participating in the deal through the purchase of 10 million units for proceeds of $2 million, which effectively amounts to half of the total financing.
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Proceeds from the financing are to be used for mineral exploration in Newfoundland, as well as for general working capital purposes.
Vulcan Minerals Inc. last traded at $0.26 on the TSX Venture.
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