Deal is alive. Just raised $1m CACHE ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT
Cache Exploration Inc., further to its press releases of July 6, 2020, July 23, 2020, and July 31, 2020, has closed the first tranche of its non-brokered private placement of 14,766,435 units of the company at a price of seven cents per unit for aggregate proceeds of $1,033,650.
Each unit consisted of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at an exercise price of 15 cents per share for a period of 24 months from the date of closing. All of the securities issued in connection with the private placement are subject to a statutory four-month hold expiring on Dec. 5, 2020.
In connection with the private placement, the company paid cash finders' fees in the amount of $27,440 and issued a total of 392,000 finders' warrants. The finders' warrants have the same terms as the warrants issued under the private placement, but are non-transferable.
The company intends to use the net proceeds of the private placement to finance exploration on the Kiyuk Lake property, for current liabilities and for general working capital purposes. The private placement is subject to final acceptance by the TSX Venture Exchange upon filing of final documentation.
The company intends to complete a second tranche of the private placement in the near future.
One insider of the company subscribed for a total of two million units in connection with the private placement. Such participation is considered to be a related party transaction as defined under Multilateral Instrument 61-101. The transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to nor the consideration paid by such persons exceeded 25 per cent of the company's market capitalization.
The company has also granted incentive stock options to certain directors, officers and consultants of the company to purchase up to 2.2 million common shares in the capital of the company pursuant to the company's stock option plan. The options are exercisable on or before Aug. 4, 2022, at an exercise price of 12 cents per share. The grant of options is subject to regulatory approval.