Financing Closed. 3M @ 12 CentsPUC Pancontinental closes $3.06-million private placement
Canada StockWatch11:06 AM Eastern Daylight Time Sep 11, 2020
Pancontinental Resources Corp (TSX-V:PUC) Shares Issued 216,847,290 Last Close 9/10/2020 $0.105 Friday September 11 2020 - News Release
Mr. Layton Croft reports
PANCON CLOSES FULLY SUBSCRIBED $3 MILLION FINANCING
Pancontinental Resources Corp. has fully subscribed its previously announced concurrent brokered and non-brokered financing. A private placement brokered by Paradigm Capital Inc. issued 14,967,000 units of the company at a price of 12 cents per unit, for gross proceeds of $1,796,040. The company issued a further 10,533,000 units for aggregate gross proceeds of $1,263,960 through non-brokered efforts. Together, the brokered offering and non-brokered offering had aggregate gross proceeds of $3,060,000 through the issuance of 25.5 million units.
Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of 18 cents for a period of two years following the closing date, subject to acceleration in certain circumstances.
Pancon president and chief executive officer, Layton Croft, stated: "Pancon's work to date at our flagship Brewer gold project and our surrounding Jefferson gold project has identified multiple strong geophysical anomalies and drill targets below the former shallow mined pits and to the northwest, west, southwest and south of the former mine. Funds from this financing will allow us to drill approximately 10,000 metres of core in our upcoming diamond drill program. Of the approximate 1,000 historic drill holes at Brewer, almost exclusively targeting shallow oxide gold mineralization, only nine holes went deeper than 200 metres below surface. Our initial diamond drill program will test targets down to 600 metres below surface."
As consideration for the services provided by the agent in connection with the brokered offering, the agent was paid a cash commission of 7 per cent of the gross proceeds of the brokered offering, and was issued 1,047,690 non-transferable broker warrants, representing 7 per cent of the total number of units sold pursuant to the brokered offering. Each broker warrant entitles the holder thereof to purchase one common share at an exercise price of 12 cents for 24 months from the closing of the offering.
In connection with the non-brokered offering, the company issued a total of 206,360 finder's warrants and paid a cash commission of $24,763.20. Each finder warrant entitles the holder thereof to purchase one common share at an exercise price of 12 cents for 24 months from the closing of the offering.
The common shares and warrants issued pursuant to the offering will be subject to a hold period of four-months plus a day from the date of issuance and the resale rules of applicable securities legislation. The net proceeds from the brokered offering and non-brokered offering will be primarily used for exploration and development, and general working capital purposes.
About Pancontinental Resources Corp.
Pancon is a Canadian junior mining company focused on exploring the prolific and underexplored Carolina slate belt in the southeastern United States. In January, 2020, Pancon won the exclusive right to explore the former Brewer gold mine in Chesterfield County, South Carolina.