Mr. Michael England reports
BTU OVERSUBSCRIBES FINANCING, CLOSES SECOND AND FINAL TRANCHE
Further to its news releases dated Sept. 14, 2017, and Oct. 2, 2017, BTU Metals Corp. has completed the second and final tranche of a non-brokered private placement. The total raised in the oversubscribed financing for the two tranches was 6,381,000 units for total gross proceeds of $765,720.
Each unit comprises one common share and one-half of one share purchase warrant of the company. Each full warrant will entitle the holder to purchase one share at a price of 18 cents per warrant share for an 18-month period after the closing date. The warrants are subject to an acceleration clause, which states that the issuer will have the right to accelerate the expiry date of the warrants if, at any time, the average closing price of the shares is equal to or greater than 30 cents for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after the issuer issues a news release announcing that it has elected to exercise this acceleration right. The company paid a cash commission to the finders on the two tranches of the financing totalling $32,047.20 and issued 234,560 finder warrants exercisable for 18 months at 12 cents.
The shares and warrants issued pursuant to the second tranche of the private placement and any shares issued on exercise of the warrants are subject to four-month resale restriction that expires on Feb. 13, 2018.
The proceeds raised will be used for general corporate purposes and for advancing the company's 16,640-hectare Galway gold project located in County Galway, Ireland. The work program will include ground geophysics, geological sampling and mapping, trenching, and drill target generation to commence later this month.
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