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Bond Resources (CSE:BJB) to tap investors for up to $3M

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CNQ:BJB
03 November 2020 13:17 (EDT)

Vancouver-based Bond Resources (BJB) is looking to raise up to C$3 million to fund activities at its Mary K Mine in Idaho.

Under the terms of the private placement, the company intends to issue 20 million units at a price of 15 cents each. These units will be comprised of one common share in Bond Resources and one common share purchase warrant.

Each warrant will entitle the holder to acquire an additional common share in the company at a price of 40 cents, exercisable over a period of two years from the date of issuance.

However, in the event that the company’s shares trade at or above a price of $0.60 for a period of 20 consecutive trading days, Bond Resources may elect to bring the expiry date of the warrants forward.

Roughly $1.3 million of the amount raised will go towards underground bulk sampling at the Mary K Mine, which lies just southeast of the town of Elk City.

A further $500,000 will go towards ore processing, while $310,000 will be used for payments to property owners, $190,000 will be used to repay various loans, and $240,000 will go towards financing costs, filing fees and commissions.

The financing follows a recent separate announcement on October 22, in which Bond Resources outlined the completion of a 17-hole drill program and the discovery of a second gold-bearing vein, located roughly 18.3 metres above the north dipping Mary K Vein.

This vein was cut by three shallow drill holes, which returned 0.91 metres at 6.58 grams per tonne of gold, including 0.3 metres at 19.78 grams per tonne of gold.

Bond Resources (BJB) is currently steady at 17 cents per share, as of 11:23am EST.

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