Nevada Organic Phosphate Inc. (CSE: NOP), a leading company in the field of organic sedimentary phosphate exploration based in British Columbia, has announced a significant milestone. Following communications released on September 19 and 23, the company has successfully closed the initial tranche of its non-brokered private placement, securing a total of $1,302,000. This first tranche was achieved through the issuance of 26,040,000 units, each priced at $0.05.
Each unit consists of one common share of the company and half of a share purchase warrant. A full warrant allows its holder to acquire an additional share at a price of $0.10 for a duration of sixty months from the date of issuance. This funding is crucial for supporting the company’s operational and exploratory goals.
Utilization of funds and upcoming projects
The revenue generated from this offering will primarily finance the first phase of a drilling program at the Murdock Property and address general working capital needs. Drilling activities are scheduled to commence in early October and are expected These initiatives are essential for advancing Nevada Organic Phosphate’s exploration efforts.
Finder’s fees and unit details
In connection with this tranche, the company has allocated $91,250 in fees and issued 1,825,000 finder’s units to select finders. Each finder’s unit consists of one common share and half of a finder’s share purchase warrant. These warrants also grant the holder the right to purchase additional shares at $0.10 for a period of sixty months from the date of issuance.
Both the standard warrants and finder’s warrants include an acceleration clause. If the average trading price of the company’s shares on the Canadian Securities Exchange equals or exceeds $0.25 for a consecutive ten-day trading period, the company may expedite the expiry of these warrants by providing notice. In this case, holders will have thirty days from the date of notification to exercise their warrants.
Regulatory compliance and securities offering
All securities distributed in this initial tranche are subject to a statutory hold period, which will lapse four months and one day after issuance, in accordance with National Instrument 45-102 – Resale of Securities. Furthermore, this offering remains contingent on receiving the necessary regulatory approvals, including that of the Canadian Securities Exchange.
It is important to note that none of the securities sold under this tranche have been registered under the United States Securities Act of 1933, as amended. Consequently, these securities cannot be offered or sold in the United States unless they are appropriately registered or qualify for an exemption from registration requirements.
About Nevada Organic Phosphate
Nevada Organic Phosphate is recognized as a junior exploration enterprise operating in the realm of organic sedimentary phosphate. The company boasts a phosphate bed extending 6.6 kilometers in northeast Nevada, with potential to increase the strike length to over 30 kilometers. This project is believed to be the largest known organic sedimentary phosphate venture in North America.
Strategically located near key transportation routes, the site is accessible via the main highway leading to Montello and Elko, Nevada, as well as in proximity to a railhead that connects to California. This advantageous location is pivotal for logistics and distribution as the company progresses in its exploratory endeavors.
For further inquiries, interested parties may contact the company’s CEO, Robin Dow, at T: 604.355.9986 or via email at robin@dowgroup.ca.
Each unit consists of one common share of the company and half of a share purchase warrant. A full warrant allows its holder to acquire an additional share at a price of $0.10 for a duration of sixty months from the date of issuance. This funding is crucial for supporting the company’s operational and exploratory goals.0