Hanstone Gold (HANS) has closed a non-brokered private placement raising gross proceeds of $772,500.
The company issued 1,395,000 units priced at $0.20 per unit for gross proceeds of $279,000 and 1,974,000 flow-through common shares at $0.25 per FT share for gross proceeds of $493,500.
Each unit consists of one common share purchase warrant exercisable to acquire an additional common share at a price of $0.30 for 12 months from the date of issuance.
The warrants are subject to an acceleration clause. If Hanstone’s common shares trade at or above $0.40 per share for 10 consecutive trading days, then the expiry date of the warrants will be accelerated to 30 days after the date the company provides an acceleration notice to the warrant holders.
Proceeds will be used to fund its ongoing exploration drilling program, working capital requirements and other general corporate purposes. The proceeds from the sale of FT common shares will be used to incur eligible “Canadian exploration expenses” related to the Company’s Doc and Snip North projects.
The company will pay finder’s fees of $7,350 and will issue 31,150 non-transferable compensation options.
Securities issued under the offering will be subject to a four-month hold period expiring April 24, 2022.
Hanstone is a precious and base metals explorer with its current focus on the Doc and Snip North Projects located in the Golden Triangle of B.C.
Hanstone Gold Corp. (HANS) opened trading at C$0.17 per share.