The Prospector News

Strongbow Raises $1.97 Million in Non-Brokered Private Placement

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Strongbow Raises $1.97 Million in Non-Brokered Private Placement

 

 

 

 

 

Strongbow Exploration Inc. (TSX-V:SBW) is pleased to announce that it has closed two tranches of the non-brokered private placement announced November 7, 2016 for gross proceeds of $1.97 million. Proceeds of the financing will be used for general working capital and for the advancement of the South Crofty tin project in Cornwall, UK.

 

 

In total, the Company issued 13,122,666 units at $0.15 per unit for gross proceeds of $1,968,400. Each Unit consists of one common share and one whole share purchase warrant. Each Subscriber Warrant allows the holder to purchase one common share of Strongbow at a price of $0.20 for a period of 24 months from the closing date of the financing, subject to the acceleration right described below. Of the 13,122,666 Subscriber Warrants issued, 10,356,000 Subscriber Warrants will expire on November 23, 2018 and 2,766,666 Subscriber Warrants will expire on November 25, 2018. All securities issued as part of this private placement and any securities issuable upon exercise of the warrants will be subject to a four month hold period which will expire March 24th and March 26th, 2017.

 

 

Strongbow paid cash commissions of $39,513 and issued 263,416 finder’s warrants, exercisable on the same terms as the Subscriber Warrants. The finder’s warrants will expire on November 23, 2018.

 

 

Several Strongbow insiders participated in the private placement on the same terms as the arm’s length subscribers. Osisko Gold Royalties Ltd. the Company’s largest shareholder, subscribed for 3,333,333 Units, increasing its basic shareholding to 14,333,333 shares which represents 24.3% of the issued and outstanding share capital of Strongbow. In addition to Osisko’s participation, insiders of the Company subscribed for a further 773,300 Units in the private placement. Gross proceeds to the Company from insiders, including Osisko, totalled $615,995.

 

 

Acceleration Right

 

 

If on any 20 consecutive trading days the closing price of the Company’s common shares (or the closing bid, if no sales were reported on a trading day) as quoted on the TSXV (or such other stock exchange, quotation system or market on which such shares are then listed) is greater than $0.50 during the term of the Warrants, then the Company may accelerate the expiry date of the Warrants to the 30th day after the date on which the Company gives notice to the subscriber of such acceleration in accordance with the Warrant. Any Warrants not exercised on or before such 30th business day will expire and will no longer be exercisable to acquire shares.

 

Posted November 28, 2016

Share this news article

MORE or "UNCATEGORIZED"


VIZSLA SILVER AGREES TO ACQUIRE NEWLY CONSOLIDATED PAST-PRODUCING SILVER DISTRICT IN THE EMERGING SILVER-GOLD-RICH PANUCO - SAN DIMAS CORRIDOR IN MEXICO

Vizsla Silver Corp. (TSX-V: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) i... READ MORE

March 28, 2024

Additional Drill Results Highlighted by Hole D-380 in Block 6 at Oko West, Intersecting 39.7 m Grading 5.27 g/t Au Including 2.8 m @ 14.18 g/t Au and 13.0 m Grading 10.50 g/t Au

Reunion Gold Corporation (TSX-V: RGD) (OTCQX: RGDFF) is pleased t... READ MORE

March 28, 2024

STLLR Gold’s Tower Gold Project Infill Drilling Continues to Confirm Mineralization at the Jonpol Deposit

STLLR Gold Inc. (TSX: STLR) (OTCQX: STLRF) (FSE: O9D) announces ... READ MORE

March 28, 2024

Hudbay Provides Annual Reserve and Resource Update and Production Outlook

Consolidated copper production is expected to average 153,000i to... READ MORE

March 28, 2024

Aya Gold & Silver: Record 2023 Production, Revenue and Operating Cash Flow

Aya Gold & Silver Inc. (TSX: AYA) (OTCQX: AYASF) is pleased t... READ MORE

March 28, 2024

Copyright 2024 The Prospector News