- Exploration and development company ExGen Resources (EXG) has launched a private placement to raise up to C$1.5 million
- The company intends to issue 100 million units at a price of 1.5 cents each, consisting of one common share and one common share purchase warrant
- Each warrant will be exercisable at a price of $0.05 per share for a period of two years
- The proceeds will be used to support future exploration work, acquisitions and general corporate activities
- ExGen Resources (EXG) is currently down 25 per cent to 1.5 cents per share
Exploration and development company ExGen Resources (EXG) has launched a private placement to raise up to C$1.5 million.
Under the terms of the financing, the Vancouver-based company intends to issue 100 million unit at a price of 1.5 cents each. These units will be comprised of one common share in ExGen Resources and one common share purchase warrant.
Each warrant will entitle the holder to acquire an additional share in the company at a price of $0.05, exercisable over a period of two years from the date of issuance.
However, should ExGen’s shares trade at or above a price of $0.10 for ten consecutive trading days, the company may elect to bring the expiry date of the warrants forward.
In connection with the financing, ExGen Resources anticipates issuing a finder’s fee to certain parties, worth seven per cent of the total amount raised, which may be paid in either cash or common shares.
According to today’s announcement, the proceeds will be used to support future exploration work, potential acquisitions and general corporate activities.
Earlier this month, ExGen Resources reported a number of high-grade drilling results from an exploration program at the Empire Mine Project in Idaho, USA, in which it holds a 20 per cent stake.
Phoenix Copper holds the remaining 80 per cent stake and acts as the operator of the property, at which 23 reverse circulation and two diamond drill holes were completed.
Among several near-surface intercepts to be returned were 6.1 metres at 2.05 grams per tonne of gold and 1.5 metres at 9.78 grams per tonne of gold.
ExGen Resources (EXG) is currently down 25 per cent to 1.5 cents per share at 1:04pm EDT.
