It appears from the last news release that the 500K has now been reduced to 200K.
MONTREAL, QUEBEC--(Marketwire - Sept. 18, 2012) - Creso Exploration Inc. ("Creso" or the "Corporation") (TSX VENTURE:CXT)(OTCQX:CRXEF)(FRANKFURT:C3X) is pleased to announce that it has closed the second and final tranche of $100,000 of its private placement announced on August 29, 2012 ("Private Placement"). In the initial closing a total of 2,000,000 units were issued for gross proceeds of $100,000.
The second tranche of the Private Placement consisted of 2,000,000 units. Each Unit consists of one common share (a "Common Share") and one Common Share warrant (a "Warrant"), with each Warrant entitling its holder to purchase a Common Share at $0.10 over a two-year period. All securities issued pursuant to the Private Placement are subject to regulatory approval and have a hold period of four months from the date of closing. No commission was paid in relation to the Private Placement.
As mentioned in a previous press release two insiders subscribed for total of $62,000 in the first tranche of the Private Placement. This participation of insiders in the Private Placement constitutes a "related party transaction" under Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions ("MI 61-101"). However, it is exempt from both the formal valuation and minority shareholder approval requirements of MI 61-601 in connection with the Private Placement because neither the fair market value of the securities to be issued, nor the consideration for such securities, is expected to exceed 25% of the Company's market capitalization as calculated in accordance with MI 61-601.
The proceeds of Private Placement will be used for working capital and general corporate purposes. On July 9, 2012, the Corporation announced the closing of a non-brokered private placement for total consideration of $500,000 to finance exploration work on Creso's Shining Tree properties.