Post by
Alphastox on Sep 04, 2013 10:02am
Lakeland closes first tranche for $738,770
Mr. Jonathan Armes reports
LAKELAND RESOURCES INC. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Lakeland Resources Inc. has closed the first tranche of its previously announced non-brokered private placement (see the company's news release dated Aug. 16, 2013) issuing 5,702,700 units at 10 cents per unit and 1,348,000 flow-through units at 12.5 cents per flow-through unit for total aggregate gross proceeds of $738,770.
Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the company at a price of 15 cents per share for a period of 12 months following the date of issuance. Each flow-through unit consists of one common share of the company issued on a flow-through basis and one warrant.
Finder's fees of $25,883.90 and 250,089 finder's units were awarded in relation to this tranche of the financing. Each finder's unit consists of one common share and one share purchase warrant exercisable into one common share at 15 cents for one year from closing.
All of the securities issued under the first tranche of the offering are subject to a hold period expiring on Dec. 31, 2013. Two insiders of the company, directly or indirectly subscribed for an aggregate of 100,000 flow-through units and one million units. The participation by insiders in the offering is considered to be a related party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued, nor the consideration being paid, exceeds 25 per cent of Lakeland's market capitalization. The aggregate proceeds raised under the offering will be used to conduct exploration on the company's Athabasca uranium properties and for general working capital.
We seek Safe Harbor.