- Canadian Palladium resources issues 33,336,698 units and raises CAD$4,000,403
- Funds to advance East Bull project
- Awards CAD$27,605 finders-fee to eligible agents
- Shares were up CAD$0.005 (2.94%) and traded at CAD$0.175 per share. Its market capitalization is CAD$7.2 million
Canadian Palladium Resources has informed the market that it has closed a non-brokered private placement, issuing 33,336,698 units and raising gross proceeds of CAD$4,000,403.
Each unit comprises one common share at CAD$0.12 per share and one common share purchase warrant exercisable at CAD$0.18 for a period of 12 months from the date of grant.
Raised funds will be used to advance its East Bull palladium project and as general working capital.
Of the total units, 12,500,000 units have been acquired by Eric Sprott via his company – 2176423 Ontario Limited – for a total consideration of CAD$1.5 million. This represents about 12.6% of the issued and outstanding common shares in Canadian Palladium Resources on a non-diluted basis, and 22.2% on a partially diluted basis.
Sprott may acquire or sell additional Canadian Palladium securities on the open market or through private acquisitions in the future, as he has a long-term view of his investment in the company. This will depend on market conditions, reformulations of plans and/or other relevant factors.
The company has also issued 1,314,099 finder’s units, 230,042 finder’s warrants and CAD$27,605 in cash as fees to eligible agents who arranged for subscriptions under the private placement.
Each finder’s unit is made up of one common share and one finder’s warrant, the latter entitling the holder to purchase one additional common share at CAD$0.18 for a 12 month period from the issuing date.
All securities issued under this private placement are subjected to a four-month resale restriction and not allowed to trade until May 29.
At the time of writing Canadian Palladium Resources shares were up CAD$0.005 (2.94%) and trading at CAD$0.175 per share. It has a market capitalization of CAD$7.2 million.
