Rogue Resources (RRS-V) Aug 26, '14 subject to final regulatory approval, has closed the first tranche of its $2.5-million private placement, previously announced on July 30, 2014, for gross proceeds of $2,073,240.
The company issued 2.23 million units and 15,418,668 flow-through units for gross proceeds of $2,073,240. Each unit consists of one common share of the company and one common share purchase warrant (non-FT). Each NFT warrant entitles the holder thereof to purchase one common share at a price of 15 cents for 18 months following closing of the offering. Each FT unit consists of one common share and one-half of one common share purchase warrant (FT). Each whole FT warrant entitles the holder thereof to purchase one common share at a price of 17 cents for 18 months following closing of the offering. The proceeds from the issuance of the FT shares will qualify as Canadian and/or Quebec exploration expenses, which will be renounced to investors no later than Dec. 31, 2014.
In addition to the units and FT units issued for gross proceeds of $2,073,240, the company also announces that as per the revised property agreement dated Aug. 15, 2014, 8.5 million units were issued to Fiducie Ananke to complete the purchase of the Lac la de Grosse Femelle silica project, subject to final regulatory approval.
The company intends to use the net proceeds of the offering primarily for expenditures on the company's Femelle silica project and East-West gold property in Quebec, for its nickel and iron ore properties in Ontario, and for general working capital. A Quebec geological firm has been commissioned to prepare a National Instrument 43-101 technical report on the Femelle silica project, which the company anticipates will be completed in September, 2014.
Total finders' fees of $140,226.81 were paid in conjunction with the offering, and 1,186,404 compensation warrants were granted. The compensation warrants entitle the holder to purchase one common share at a price of 12.5 cents for 18 months following closing of the offering. Secutor Capital Management Corp., an Investment Industry Regulatory Organization of Canada member firm, placed $1,378,240 of the offering.
All common shares issued and issuable hereunder (including those issuable upon the exercise of warrants, FT warrants and the compensation warrants) are subject to a hold period expiring Dec. 27, 2014. |
