Nevada Organic Phosphate Inc. (CSE: NOP), a pioneering firm based in British Columbia, has announced the successful closure of the first phase of its recently initiated non-brokered private placement. The funding round raised a total of $1,302,000 through the issuance of 26,040,000 units, priced at $0.05 each.
Each unit consists of one common share and a half-share purchase warrant, providing investors the option to acquire additional shares in the future.
Each full warrant enables the purchase of one extra share at $0.10, valid for sixty months from the issuance date.
Table of Contents:
Utilization of proceeds
The funds raised from this offering are designated primarily for a critical phase one drilling program at the company’s Murdock Property, as well as for general operational expenses. Drilling activities are scheduled to begin in early October and are expected
Details of the offering
In conjunction with the first tranche of the offering, the company has compensated finders with fees totaling $91,250 and has issued 1,825,000 finder’s units. Each of these finder’s units consists of one share and a half-share purchase warrant, similar to the structure of the regular units. The finder’s warrants grant the right to purchase additional shares at the same price of $0.10 for a duration of sixty months.
Furthermore, both the warrants and finder’s warrants include an acceleration clause. Should the average trading price of the company’s shares on the Canadian Securities Exchange (CSE) exceed $0.25 for ten consecutive trading days after issuance, the company has the right to expedite the expiry of the warrants. This action would require notifying warrant holders, leading to an expiry thirty days from the issuance of the notice.
Regulatory considerations
All securities related to this tranche are subject to a statutory hold period lasting four months and one day following their issuance, in accordance with National Instrument 45-102 governing the resale of securities. Additionally, the offering is contingent upon receiving necessary regulatory approvals, including validation from the Canadian Securities Exchange.
It is crucial to note that none of the securities sold in this tranche have been—and will not be—registered under the United States Securities Act of 1933. Consequently, they cannot be offered or sold within the United States unless registered or exempt from the registration requirements. This announcement does not constitute an offer to sell, nor does it solicit an offer to buy the securities in any jurisdiction where such an offer would be deemed illegal.
About Nevada Organic Phosphate
Nevada Organic Phosphate Inc. is a junior exploration company operating a significant organic sedimentary phosphate deposit extending 6.6 kilometers in northeast Nevada. The company anticipates that with further applications, the potential length of the phosphate deposit could exceed 30 kilometers. This project is recognized as the only major organic sedimentary phosphate initiative in North America, conveniently located near the main highway leading to Montello/Elko, Nevada, and close to the rail connection to California.
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Each unit consists of one common share and a half-share purchase warrant, providing investors the option to acquire additional shares in the future. Each full warrant enables the purchase of one extra share at $0.10, valid for sixty months from the issuance date.3
Each unit consists of one common share and a half-share purchase warrant, providing investors the option to acquire additional shares in the future. Each full warrant enables the purchase of one extra share at $0.10, valid for sixty months from the issuance date.0
Each unit consists of one common share and a half-share purchase warrant, providing investors the option to acquire additional shares in the future. Each full warrant enables the purchase of one extra share at $0.10, valid for sixty months from the issuance date.1
Each unit consists of one common share and a half-share purchase warrant, providing investors the option to acquire additional shares in the future. Each full warrant enables the purchase of one extra share at $0.10, valid for sixty months from the issuance date.2
