VanadiumCorp Resource Inc. has announced a non-brokered private placement financing (the “Financing”) of up to $1.3 million dollars.
The Financing will consist of:
- up to 23,333,333 non-flow-through units (“Units”) priced at $0.03 per share for gross proceeds of up to $700,000. Each Unit will consist of one common share of the Company and one purchase warrant to acquire an additional common share at $0.05 for a period of three years; and
- up to 15,000,000 flow-through shares (without warrant) priced at $0.04 per share for gross proceeds of up to $600,000.
Directors and officers of the Company may acquire securities under the Financing, which participation would be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Such participation is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
The Company may pay finders’ fees in cash and warrants bearing same terms as the Unit warrants. All shares issued pursuant to the Financing and any shares issued through the exercise of warrants will be subject to a four-month hold from the closing date. The Financing is subject to TSXV Exchange approval.
Proceeds of the financing will be used: in respect of the Units, for working capital, production and sale of vanadium electrolyte, and general corporate purposes of the Company; and in respect of the flow-through shares, for qualifying expenditures to maintain and advance the Company’s resource properties.
VanadiumCorp’s Chairman and CEO Ian Mallory stated, “This financing will enable the Company to resume full production at our first plant and make sales of our vanadium electrolyte to leading manufacturers of VFBs in North America and Europe. VanadiumCorp will be back on track.”
