Lakeland Resources (
TSX-V:LK,
StockForum), a Vancouver-based firm engaged in the acquisition, exploration and development of mineral properties, announced today that the company had closed a brokered and non-brokered private placement offerings for total gross proceeds of $2.83 million.
According to the
news release, Secutor Capital Management acted as lead agent regarding the private placement of 5.58 million flow-through units and 6.15 million ordinary units for gross proceeds of $2.69 million.
The company also closed an additional non-brokered private placement of 305K flow-through units and 325K ordinary units for gross total proceeds of $144,500.
The release went on to note that each flow-through unit contains one flow-through common share and one half of one non-flow-through common share purchase warrant that entitles bearers to exercise each full warrant for one common share in Lakeland for a period of up to 12 months from the transaction closing for $0.30 per share.
The Agent for the brokered transaction received compensation options equivalent to 8% of the number of flow-through and regular units sold in the transaction with each option able to be exercised for up to 12 months after the transaction closes at $0.25 per flow-through unit and $0.21 per regular unit.
Lakeland also reimbursed the agent a cash commission of 8% of the gross sales of the flow-through units sold through the agent with the agent also receiving options equivalent to 8% of the number of flow-through and regular units sold in the brokered placement.
Fees were also paid on the non-brokered part of the company’s offering in compliance with TSX Venture Exchange policies.
All proceeds from the flow through units will be put forward to incur qualified Canadian Exploration Expenses with the proceeds from the regular units being used for exploration of the company’s uranium assets located in the Athabasca Basin.
Lakeland Resources was in the news recently when
the company announced that its private placement had been over-subscribed.
Shares fell 5.00% on the news to $0.19 per share.
Currently there are 36.4m outstanding shares with a market cap of $6.9 million.