Group Eleven Resources Corp (CVE:ZNG) (OTCMKTS:GRLVF) has closed an up-sized private placement that raised C$1.55 million to advance its exploration plans, including follow-up drilling at the recently discovered zinc-lead zone near Carrickittle in Ireland.
The company issued 25,833,333 units at C$0.06 each, with each unit consisting of one common share and one half non-transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional company share at C$0.12 per share for 36 months from the date of issue. Initially, the company sought to raise only C$1 million in proceeds.
READ: Group Eleven Resources hits best mineralization to date at Carrickittle prospect at PG West project, Ireland
In a statement Friday, Group Eleven noted that investor Michael Gentile subscribed for 10 million units for gross proceeds of C$600,000. Gentile’s ownership has increased to 10,265,333 common shares and 5 million common share purchase warrants, representing 9% of the outstanding common shares (on a non-diluted basis) and 12.8% on a partially diluted basis.
Under its existing rights to maintain a pro-rata position in the company, Group Eleven said Glencore Canada Corporation subscribed for 6,825,900 units for gross proceeds of $409,554. Glencore's ownership and control increased to 30,225,900 common shares and 15,112,950 common share purchase warrants, representing beneficial ownership of and control of 26.4% of the outstanding common shares (on a non-diluted basis) and 35% on a partially diluted basis.
The offering is subject to regulatory approval and all securities are subject to a hold period under applicable Canadian securities legislation that expires four months and one day after the closing date.
Finder's fees of $23,685 are payable in cash on a portion of the private placement to parties at arm's length to the company. In addition, 394,758 non-transferable finder's warrants are being issued. Each Finder's warrant entitles a holder to purchase one common share at $0.12 each for three years from the date of issue.
On July 6, Group Eleven revealed that it had hit the best mineralization ever found at the Carrickittle prospect, which is part of its PG West project in Ireland.
A drill hole intercepted 10.3 metres of 14.6% zinc, 5% lead (19.6% combined) and 43 grams per ton (g/t) silver starting at 56.3 metres downhole, the firm told investors.
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