Graphite One Closes Financing
Pursuant to this closing, the Company has issued a total of 19,417,642 units (the "Units") at a price of C$0.07 per Unit. Each Unit consists of one common share and one transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a purchase price of $0.10 per share for a period of three years from the date of the closing of the Private Placement.
No new insiders were created, nor any change of control occurred, as a result of the offering. The Company has paid finders' fees in the aggregate amount of C$85,710 and issued 1,224,434 transferrable share purchase warrants, each such warrant entitling the holder to acquire one additional common share of the Company at the same price and under the same terms as the Warrants described above.
The net proceeds of this offering will be used for exploration and development of the Company's Graphite Creek project and for general working capital purposes.
Closing is subject to receipt of final applicable regulatory approvals including approval of the TSX Venture Exchange. All securities issued in connection with the private placement will be subject to a restricted period that expires four months following the date of issuance.
Further, the Company is pleased to announce that it intends to close on an additional financing to raise gross proceeds of approximately $600,000 in the coming weeks. The Company plans to issue up to 8,571,428 Units, on the same terms and conditions as yesterday's completed Private Placement and may pay finder's fees to arm's-length parties in connection with this offering. The offering is subject to receipt of final applicable regulatory approvals, including approval of the TSX Venture Exchange.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.