- EDM Resources (EDM) announced a non-brokered hard dollar and flow-through private placement for gross proceeds of up to C$1,650,000
- For the hard dollar component, the company intends to issue up to 3,000,000 units at $0.50 per unit
- For the flow-through component, the company intends to issue up to 250,000 common shares at $0.60 per unit
- EDM is a Canadian exploration and mining company
- EDM Resources (EDM) is down by 17.86 per cent, trading at $0.46 per share
EDM (EDM) has announced a non-brokered hard dollar and flow-through private placement.
Gross proceeds may reach up to C$1,650,000.
For the hard dollar component, the company intends to issue up to 3,000,000 units at $0.50 per HD unit. Each HD unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share at $0.75 for 36 months from the closing date.
For the flow-through component, the company intends to issue up to 250,000 common shares at $0.60 per FT unit. Each FT unit consists of one common share and one half of one share purchase warrant. Each warrant entitles the holder to purchase one additional common share at $0.75 for 36 months from closing.
The company will use the net proceeds from the HD offering to advance geotechnical and environmental bonding work at its wholly-owned Scotia Mine, which is located 60 km North of Halifax. It will use the proceeds to pay deposits for critical long-lead time equipment and for general working capital purposes.
The company will use the gross proceeds from the flow-through offering to conduct exploration work on its mineral properties qualifying as Canadian Exploration Expenditures.
Mark Haywood, President and CEO of EDM, commented on the announcement.
“We are very pleased to provide an opportunity for investors to participate in this private placement. The company anticipates this being the last, prior to the commencement of commercial production presently scheduled for January 2024.”
“The majority of the net proceeds of the hard dollar component of this financing is planned to exchange the company’s $3 million cash environmental bond with a surety environmental bond, which in effect releases the $3 million to EDM’s treasury. The proceeds of the flow-through component of the financing will be used to advance the company’s exploration projects which are near to the Scotia Mine.”
The offering is subject to TSXV approval.
EDM is a Canadian exploration and mining company. It has full ownership of the Scotia Mine and related facilities near Halifax, Nova Scotia. Through its wholly owned subsidiary, EDM also holds several prospective exploration licenses near its Scotia Mine and in the surrounding regions of Nova Scotia.
EDM Resources (EDM) is down by 17.86 per cent, trading at $0.46 per share at 10:25 am ET.
