JOHANNESBURG (miningweekly.com) – TSX-V-listed Bowmore Exploration has closed the first $355 600 tranche of a nonbrokered private placement with Canadian investors.
The precious metals-focused exploration mining company noted on Friday that the gross proceeds raised from the placement were to be used to incur Canadian exploration expenses on Bowmore’s properties and for working capital.
The first tranche consisted of $230 000 by way of the issuance of more than 2.8-million units at a price of $0.08 a unit and $125 600 by way of issuance of more than one-million flow-through units at $0.12 a unit.
Each flow-through unit was comprised of one flow-through common share and one-half of one common share purchase warrant and each unit comprised one common share and one half common share purchase warrant.
Each whole warrant will entitle the holder to acquire one common share of the company for 24 months until July 4, 2017, at $0.15 a share for the first 12 months and $0.20 a share thereafter.
Bowmore director Robert Wares, president, CEO and director Paul Dumas and CFO Martin Nicoletti subscribed to the private placement.
The company explained that it relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 contained in Section 5.5(b) and 5.7(b), respectively, with regard to the issuance of units to insiders.
All securities issued pursuant to the placement were subject to a four-month hold period, expiring November 4.
Meanwhile, Bowmore board member Eduardo Perlicz had resigned to pursue other professional duties. The board of directors thanked Perlicz for his contribution over the past several years and wished him well in his future endeavours.
Bowmore was currently focused on precious metal exploration in Canada and Mexico.