Nevada Organic Phosphate Inc. (CSE: NOP), a key player in organic sedimentary phosphate exploration based in British Columbia, has completed the first stage of its non-brokered private placement. This funding round has generated $1,302,000 through the issuance of 26,040,000 units, with each unit priced at $0.05.
This capital will be primarily allocated to initiating a drilling program at the Company’s Murdock Property, along with providing essential working capital. Drilling operations are scheduled to commence in early October and are expected This announcement follows updates from September 19 and September 23, emphasizing the Company’s commitment to advancing its exploration activities.
Details of the offering and investor incentives
Each unit consists of one common share in the Company and half of a share purchase warrant. The full warrant allows the holder to acquire an additional share at a price of $0.10 for a duration of sixty months following the issuance date. This structure incentivizes investors and aligns their interests with the Company’s growth.
Finder’s fees and additional units
As part of this funding initiative, finder’s fees totaling $91,250 were paid, along with the issuance of 1,825,000 finder’s units. Each unit consists of one share and half of a finder’s warrant, which also enables the holder to purchase an additional share at the same price of $0.10 for a period of sixty months. This strategy recognizes those who facilitated the funding process.
Market conditions and potential
The proceeds from this offering are critical for advancing the phase one drill program at the Murdock Property, a cornerstone of the Company’s operational strategy. Located in northeast Nevada, this site is known for its extensive organic sedimentary phosphate resources, stretching approximately 6.6 kilometers in length, with potential extensions exceeding 30 kilometers.
This scale positions Nevada Organic Phosphate as a unique player in North America, where large-scale organic sedimentary phosphate projects are rare. Its proximity to major transportation routes, including the highway to Montello and Elko, Nevada, and a nearby railhead towards California, enhances the project’s viability.
Considerations for investors
Investors should note that both the warrants and finder’s warrants include an acceleration provision. If the volume-weighted average price of the Company’s shares on the Canadian Securities Exchange reaches or exceeds $0.25 for ten consecutive trading days post-issuance, the Company reserves the right to expedite the expiration of these warrants, notifying the holders accordingly.
All securities provided through the first tranche of this offering are subject to a statutory hold period, which will expire four months and one day after issuance, according to National Instrument 45-102 regarding the resale of securities. Additionally, these securities have not been registered under the United States Securities Act of 1933, limiting their offer and sale within the United States unless an exemption applies.
Nevada Organic Phosphate Inc. is at a pivotal moment in its journey, supported by this recent funding. The Company aims to leverage its unique position within the phosphate market, enhance exploration efforts, and contribute to sustainable agricultural practices through organic phosphate resources.