Non-brokered offering finances development and general working capital
By Devika Patel
Knoxville, Tenn., July 5 – Signature Resources Ltd. said it raised C$466,794 in the first tranche of a non-brokered private placement of units. The deal priced for between C$400,000 and C$1 million on April 21.
The company is selling up to 20 million units at C$0.05 per unit. It plans to sell a combination of flow-through units of one flow-through common share and one half-share warrant and units of one common share and one warrant.
Sig sold 9,335,880 units in the initial tranche.
Each whole warrant is exercisable at C$0.15 for two years. The strike price reflects a 114.29% premium to the April 20 closing share price of C$0.07.
Proceeds will be used for general working capital purposes and development of the Lingman Lake Project.
In connection with the first tranche, the company paid a C$24,544 cash finder's fee and 490,870 finder's warrants to Sonesh Sira.
The precious metals explorer is based in Toronto.
| Issuer: | Signature Resources Ltd.
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| Issue: | Flow-through units of one flow-through common share and one half-share warrant, units of one common share and one warrant
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| Amount: | C$1 million (maximum)
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| Units: | 20 million (maximum)
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| Price: | C$0.05
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.15
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| Agent: | Non-brokered
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| Pricing date: | April 21
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| Settlement date: | July 5 (for C$466,794)
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| Stock symbol: | TSX Venture: SGU
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| Stock price: | C$0.07 at close April 20
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| Market capitalization: | C$1.58 million
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| Flow-through units
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| Warrants: | One half-share warrant per unit
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| Units
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| Warrants: | One warrant per unit
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