In a significant move aimed at enhancing its exploration capabilities, Finlay Minerals Ltd. has announced the closure of its latest non-brokered private placement. This development comes after the initial announcement on October 6, detailing the structure of the offering, which included both flow-through and non-flow-through units.
The private placement generated a total of $1,709,890 in gross proceeds, comprising 10,633,999 flow-through units priced at $0.15 each and 883,000 non-flow-through units selling at $0.13 each.
This funding is expected to significantly impact the company’s ongoing exploration projects.
Table of Contents:
Details of the private placement
Each flow-through unit consists of one common share issued on a flow-through basis in accordance with the Income Tax Act of Canada, termed as an FT Share, along with half of a non-flow-through common share purchase warrant, known as a Warrant. The full Warrant grants holders the right to purchase one non-flow-through common share, referred to as an NFT Share, at an exercise price of $0.25 until October 17.
Similarly, each non-flow-through unit comprises one NFT Share and one Warrant, maintaining the same terms as those associated with the flow-through units. The proceeds from the sale of FT Shares will be utilized to incur Canadian exploration expenses and qualify as flow-through critical mineral mining expenditures, as defined in the Income Tax Act.
Utilization of funds
The funds raised through this private placement will primarily focus on the exploration of the company’s properties, specifically the SAY, JJB, and Silver Hope sites. This investment is vital for advancing the understanding of resource potential in these areas, which are known for hosting copper-gold porphyry and gold-silver epithermal targets in British Columbia.
Furthermore, the company intends to allocate a portion of the proceeds toward general working capital needs, ensuring that all operational aspects are adequately funded.
Regulatory considerations
The private placement was conducted under the guidelines of the listed issuer financing exemption as specified in Part 5A of National Instrument 45-106, along with reliance on the Coordinated Blanket Order 45-935. Notably, the securities offered are not subject to any hold period under current Canadian securities regulations, which allows for immediate trading.
Additionally, Finlay Minerals compensated finders with a total cash fee of $96,550.78 and issued 648,358 non-transferable finder warrants. Each finder warrant permits the holder to purchase one NFT Share at the same exercise price of $0.25 until October 17. It’s important to note that these finder warrants and the NFT Shares acquired through their exercise will be subject to a hold period concluding on February 18.
Company overview and future outlook
Finlay Minerals Ltd. is actively engaged in the exploration of base and precious metal deposits within British Columbia. The company operates several promising properties, including ATTY, PIL, JJB, SAY, and Silver Hope. These properties are strategically located in regions where recent discoveries of copper-gold porphyry deposits have been reported, providing significant potential for future exploration success.
Finlay trades under the symbol FYL on the TSXV and FYMNF on the OTCQB. As the company moves forward with its exploration initiatives, stakeholders can stay updated through its official website.
In conclusion, while the company has successfully raised funds through this private placement, it remains committed to transparent communication with its investors and stakeholders, ensuring that all future endeavors align with the best interests of its growth strategies.
