Ready Set Gold Corp (CSE:RDY) (OTCPINK:RDYFF) (FRA:0MZ) has said it will use the proceeds of an upcoming non-brokered private placement to fund exploration and development efforts at its gold projects in Ontario.
The non-brokered private placement with a "group of arm's length investors" will consist of as many as 2,500 units at a price of $1,000 per unit. Total proceeds will equal $2.5 million.
As noted by Ready Set Gold, each unit will be comprised of a $1,000 principal amount, three-year 7.5% senior unsecured convertible debenture and 3,334 common share purchase warrants of the company.
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The Canadian gold explorer said it has binding subscriptions from investors for $1.8 million, which includes $1.2 million from Concept Capital Management, an asset management company focused on evaluating and investing in Canadian resource companies.
Ready Set Gold expects to close this initial tranche of the private placement imminently.
"This financing positions us to advance the exploration of our Northshore project with programs planned for the summer and fall of this year,” Christian Scovenna, CEO & director at Ready Set Gold said in a statement.
Scovenna continued: “The financing is non-dilutive and being completed at arm's length with parties that have a track-record of identifying quality investment opportunities in the resource sector, which is a testament to the quality of our Northshore project and the early results from our maiden drill program campaign, as previously disclosed on May 20, 2021."
Additionally, each debenture will be convertible at any time after the date of issue into common shares at a price of $0.27 each, which is subject to adjustment. Each warrant will allow the holder to acquire one common share at a price of $0.47 per share up to 36 months after issuance.
The financing is expected to close on or about July 7, 2021.
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