GMV Minerals closes $2.66M first tranche of financing
2016-08-31 16:08 ET - News Release
Mr. Ian Klassen reports
GMV MINERALS INC. ANNOUNCES CLOSING OF $2,266,000 FOR THE FIRST TRANCHE OF FINANCING
GMV Minerals Inc. has received conditional approval from the TSX Venture Exchange for the company's non-brokered private placement of up to six million units priced at 50 cents per unit, as reported in the company's news release dated Aug. 15, 2016.
The company has closed the first tranche of its previously announced non-brokered private placement consisting of 4,532,000 units at a price of 50 cents per unit to raise gross proceeds of $2,266,000, with all securities issued having a four-month hold period that expires on Dec. 31, 2016.
As previously announced, each unit in this offering consists of one common share in the capital of the company and one-half share purchase warrant. Each full warrant entitles the unitholder to purchase one additional GMV common share at a price of 65 cents per share at any time within 18 months of the closing. The warrant will also include an acceleration clause, whereby, if the trading price of the issuer's shares on the TSX-V for 10 consecutive trading days exceeds $1 per share during the exercise period, the expiry time of the warrants shall be accelerated, at the option of the company, such that the expiry time will be 30 calendar days. This 30-day period will commence seven calendar days after the 10th premium trading day.
The company will pay an aggregate of $62,250 and issue 124,500 finder warrants in connection with this tranche of the offering. Each full finder warrant entitles the holder to acquire one common share of the company at 65 cents per share for 18 months from the date of closing. The finder warrants are issued on the same terms and conditions as the private-placement warrants.
The net proceeds of the offering will be used to advance exploration activities at the company's Mexican Hat gold property located in southeast Arizona, as well as for general working capital.