Dilution...Dilution....
Altan Nevada arranges $471,640 private placement
2021-09-24 13:10 ET - News Release
Mr. Paul Stephen reports
ALTAN NEVADA MINERALS ANNOUNCES PRIVATE PLACEMENT
Altan Nevada Minerals Ltd. has arranged a non-brokered private placement of up to 47,164,000 common shares of the company at a price of one cent per share for aggregate gross proceeds to the company of up to $471,640.
The company is relying on the temporary relief measures first announced by the TSX Venture Exchange on April 8, 2020, and most recently extended on June 17, 2021, to be effective until Dec. 31, 2021, in response to the COVID-19 pandemic in offering the shares at a price that is fewer than five cents per share. Under the temporary relief, the minimum offering price for private placements has been revised from five cents to one cent in circumstances where the market price (as such term is defined in the policies of the exchange) of an issuer's listed shares is not greater than five cents. The current market price of the shares is one cent.
The company has previously relied on the temporary relief to issue 22.5 million shares, and under the temporary relief, the aggregate number of shares it may issue relying on this exception is not greater than 100 per cent of the shares it had outstanding on April 7, 2020. The company had 69,664,943 shares outstanding on April 7, 2020, and, accordingly, can issue up to an additional 47,164,943 shares pursuant to the temporary relief.
Under the offering, the company may pay a finder's fee in respect of those purchasers under the offering introduced to the company by certain parties. Each finder will receive a cash payment equal to 6 per cent of the gross proceeds received by the company from purchasers under the offering who were introduced to the company by such finder.
The company intends to use the proceeds from the offering: to maintain its interests in the Venus copper project and the Montelle project, both located in the state of Nevada; to repay certain funds loaned to the company by Altan Rio Minerals Ltd., a company with common officers and directors; and for general working capital and administrative expenses.
We seek Safe Harbor.