Freeport Resources closes $4-million private placement
2020-08-10 19:11 ET - News Release
Mr. Gord Friesen reports
FREEPORT RAISES $4 MILLION IN PRIVATE PLACEMENT
Freeport Resources Inc. has completed its offering of 13,334,997 units by way of a non-brokered private placement, at a price of 30 cents per unit, for gross proceeds of $4,000,499. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant is exercisable to acquire an additional common share of the company, at a price of 40 cents, until Feb. 10, 2022, subject to accelerated expiry in the event the closing price of the common shares of the company on the TSX Venture Exchange is greater than 80 cents for five consecutive trading days.
The company intends to allocate the proceeds of the placement to its continuing review of potential strategic acquisition opportunities and for general working capital purposes. In the event the company elects to proceed with the previously announced acquisition of Quidum Resources Inc., a portion of the proceeds from the placement may be utilized to satisfy the expenses associated with the transaction.
In connection with completion of the placement, the company paid $103,164 and issued 507,160 units to certain arm's-length brokerage firms that assisted in introducing subscribers to the company. All securities issued in connection with the placement are subject to a four-month-and-one-day statutory hold period, in accordance with applicable securities laws, expiring on Dec. 11, 2020.
About Freeport Resources Inc.
Freeport is a Canadian junior exploration company with a diverse portfolio of properties -- the Red Rose mine (a past producer of tungsten gold copper), Spanish Mountain gold property (adjacent to a proposed open-pit gold mine) and the Q property (a large fluorspar deposit), all located in British Columbia. The Hutton Garnet beaches in Labrador, Eastern Canada, have a positive National Instrument 43-101 prefeasibility (2004) and a 5,000-tonne bulk sample released from environmental assessment.