Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will give the holder the right to purchase one additional common share at a price of 85 cents, until February 24, 2013.
The company said it did not pay any finder's fees in connection with the offering, and that the new funds raised would be used for general working capital, and to fund the company's planned exploration and development activities at the Charay project in Mexico.
Westridge Resources is a Canadian mineral exploration company that recently entered into an option agreement to acquire up to a 100 percent interest in the Charay project, located in Sinaloa State, Mexico.
Charay is a low sulphidation, high grade gold and silver property, which is comprised of five concessions totaling 11,000 hectares. The property is near infrastructure including major highways, railroads, trans-continental power lines and large water sources.
A drilling program on the project that is designed to expand the zone of gold and silver mineralization defined by previous drilling on the El Padre vein, both to depth and along strike, began in the first quarter of this year.
Westridge said today it has inked a convertible loan agreement with Fibre-Crown, under which the company will issue a convertible debenture in the principal amount of $258,000.
The debenture will bear interest at a rate of eight percent per year, payable monthly.
Under the terms of the deal, Fibre-Crown can convert the convertible debenture into common shares of Westridge at a price of 65 cents per common share until February 1, 2013.
Westridge said it can, at its option, extend the maturity date for an additional 12 months by payment of three percent of the principal amount then outstanding.
The loan agreement is still subject to the approval of the TSX Venture Exchange.