Mink Ventures Corporation (TSXV: MINK) has closed the first tranche of its non-brokered private placement announced on 7 May 2024. The company has raised gross proceeds of C$283,670 from the issuance of 1,355,727 hard dollar units at a price of C$0.11 per HD Unit and the issuance of 961,000 CMETC eligible flow-through units at a price of C$0.14 per FT Unit in this first tranche. A second and final closing of the offering is expected to occur on 12 June 2024.
Each HD Unit consists of one common share of the company and one Common Share purchase warrant. Each HD Warrant shall entitle the holder thereof to acquire one common share of the company for a period of 36 months from the date of issuance at an exercise price of C$0.25. The same applies for each FT unit consisting of one common share of the company and one half of one common share purchase warrant.
Certain directors and officers of the company purchased an aggregate of 145,000 FT Units pursuant to the private placement, constituting a “related party transaction” as such term is defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The transaction will be exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the Offering under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves the Related Parties, exceeds 25% of the company’s market capitalization.
The company plans to use the net proceeds raised from the sale of the HD Units and FT Units under the offering for the exploration and advancement of the company’s Montcalm nickel copper cobalt project, the Warren copper nickel project and, in respect of the HD Unit proceeds, for general working capital purposes.
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