TORONTO (miningweekly.com) – Canadian exploration and development company Wellgreen Platinum has closed the first C$2.8-million tranche of a private placement with Electrum Strategic Opportunities Fund.
The TSX-listed company issued 14-million units comprising one common share in the capital of Wellgreen and one common share purchase warrant. Each would entitle Electrum to buy one Wellgreen share at a price of $0.27 apiece, for a period of five years following the closing date of the first tranche.
Wellgreen advised that it expected to sell another 1.5-million units to other subscribers by April 1.
The Vancouver-based company was hoping to increase its second-tranche offering by ten-million units to 55-million units, on the back of strong shareholder interest. Of these units, 36-million would be sold to Electrum. The second tranche was expected to close in May.
The net proceeds of the private placement would be used to develop the company's Wellgreen platinum-group metals/nickel project in the Yukon and for general corporate purposes.
Wellgreen also announced the appointments of Wayne Kirk and Mark Fields to its board, to fill the vacancies left by the resignations from the board of Greg Johnson and Wes Hall.