Metanor Resources arranges private placement
2017-12-06 17:34 ET - News Release
Mr. Ronald Perry reports
METANOR ANNOUNCES BROKERED PRIVATE PLACEMENT
Metanor Resources Inc. has entered into an agreement with Sprott Capital Partners to act as lead agent, on its own behalf and, if applicable, on behalf of a syndicate of agents, pursuant to which the agents will sell by way of private placement up to 13,655,000 securities of the company consisting of a combination of units (hereinafter defined) of the corporation at a price of 70 cents per unit and including a minimum 2.95 million common shares of the corporation issued on a flow-through (FT) basis at a price of 85 cents per FT share (minimum of $2,507,500 in FT share gross proceeds). The issuance of units and FT shares shall be collectively referred to as the offering.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share for two years from the closing date at a price of 90 cents.
The gross proceeds from the FT share offering will be used to finance exploration of the company's properties as qualifying Canadian exploration expenses as defined in Subsection 127(9) of the Income Tax Act (Canada) which will be renounced to the subscribers with an effective date of Dec. 31, 2017. The proceeds from the unit offering will be used for continuing development of the company's properties and for general corporate purposes.
It is anticipated that the private placement will close no later than Dec. 29, 2017, and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and other customary conditions.
In connection with the offering, the agents will receive a cash commission equal to 6.0 per cent of the gross proceeds raised.
All of the securities sold pursuant to the offering will be subject to a four-month hold period which will expire four months and one day from the date of closing.
We seek Safe Harbor.
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