There are good reasons when a company such as Alta Copper can secure a non-brokered financing with no warrants and at a 40% premium to market. Blue sky.
ALTA COPPER ANNOUNCES NON-BROKERED FINANCING
Subject to the approval of the Toronto Stock Exchange that Alta Copper Corp. has arranged a non-brokered private placement to raise gross proceeds of $766,645. The company intends to use the proceeds of the private placement for working capital and continuing community initiatives in Peru.
The private placement will consist of the sale of approximately 1,533,290 common shares at a price of 50 cents to raise gross proceeds of approximately $766,645. The common shares will be subject to a mandatory hold period ending four months and one day after issuance, in accordance with applicable securities law. There will be no warrants included in this private placement.
Giulio T. Bonifacio, executive chair, commented: "In view of the context of the current capital markets we have limited the amount raised to minimize dilution to all shareholders while also arranging our equity offering with no warrant and at a premium to the market close on Oct. 11, 2023. We are continuing to advance discussion with several interested parties for purposes of funding our drilling program planned for 2024 while ensuring we minimize dilution to all shareholders. Our optimized preliminary economic assessment which will prove to be a significant project catalyst is advancing with results now targeted for publication by Q1 2024 in view of our desire to capture recent positive project developments both by way of metallurgical testwork and our geological modelling."
Certain directors and officers of the company will subscribe for a portion of the private placement, which subscriptions will constitute related party transactions pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. It is anticipated that the company will be exempt from the formal valuation and minority shareholder approval requirements in connection with the participation of insiders in reliance on the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the insider participation is anticipated to not exceed 25 per cent of Alta Copper's market capitalization, as determined in accordance with MI 61-101.