Rackla Metals (RAK-V) completes $3.4 million private placement
Dec 22, '22 - NR
Rackla Metals is pleased to announce that it has closed its previously announced private placement financing with the issuance of 11,365,000 flow-through units at $0.285 each (the “FT Units”) for gross proceeds of $3,239,025 (the “FT Offering”) and 1,250,000 hard-dollar units at a price of $0.20 each (the “HD Units”) for gross proceeds of $250,000 (the “HD Offering” together with the FT Offering, the “Offerings”) for aggregate gross proceeds of $3,489,025 from the Offerings.
Each FT Unit consists of one flow-through common share and one-half warrant and each HD Unit consists of one common share and one-half warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at $0.35 for two years from closing.
The common shares and warrants issued on closing are subject to a regulatory resale restriction until April 23, 2023. The Offerings are subject to final approval of the TSX Venture Exchange.
The Company intends to use the proceeds from the Offerings to fund exploration and drilling on the Company’s Tombstone Gold Belt properties within the Selwyn Basin in the coming year, and for continuing investigations of additional mineral properties for acquisition.
Simon Ridgway, CEO of the Company, comments, “We are pleased with the closing of the upsized financing that raised $3.4 million, as it reflects significant investor interest in our exploration plans for 2023. Crescat Capital was the lead purchaser in the financing investing $1.0 million of the funds dedicated to the exploration of the Tombstone Belt.”
Rackla has consolidated an extensive land position in the eastern Tombstone Belt that extends through the southeast Yukon and into the NWT. Yukon and Alaska have a number of operating mines, development projects and discoveries with Reduced Intrusive Related Gold Systems (RIRGS) and management believes that the NWT portion of the Belt, which is unexplored for RIRGS, has the potential to be the next frontier for the discovery of these type of deposits.
The Company’s 2023 exploration program includes completing an airborne magnetic program, building on a regional geochemical database and defining drill targets for a planned early summer drill program on the Astro Project, as well as advancing exploration on our other NWT projects that include the Jos, Cinnabar and RAK properties.
Qualified Person
Bruce Smith, M.Sc. (Geology), a member of the Australian Institute of Geoscientists, is Rackla’s Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Smith reviewed and approved the technical information contained in this news release.
ON BEHALF OF THE BOARD
Simon Ridgway,
CEO and Director
Tel: (604) 801-5432; Fax: (604) 662-8829
Email: info@goldgroup.com
Website: www.racklametals.com |
