Nevada Organic Phosphate Inc. has successfully closed the first tranche of its non-brokered private placement, generating $1,302,000. This funding is part of the company’s strategy to enhance exploration activities in the organic sedimentary phosphate sector.
Previously announced on September 19 and September 23, the company issued a total of 26,040,000 units, with each unit priced at $0.05. The funds raised will primarily support initial drilling at the company’s Murdock Property and cover general operational expenses.
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Details of the private placement
Each unit consists of one common share, referred to as a Share, and one-half of a warrant. The full warrant allows investors to purchase an additional share at $0.10 for five years from the issuance date. This structured offering aims to raise capital while providing investors with future growth opportunities.
Use of proceeds
The proceeds will be directed towards a comprehensive drilling program scheduled to begin in early October and conclude by month-end. This initiative is crucial for assessing phosphate reserves at the Murdock Property, known for its potential in organic sedimentary phosphate mining.
In conjunction with this funding round, the company has compensated finders with $91,250 in fees and issued 1,825,000 finder’s units. Each finder’s unit includes one share and half a finder’s warrant, similar to the terms offered to other investors. This strategy aims to strengthen relationships with financial partners and facilitate future fundraising efforts.
Warrant and regulatory considerations
Both the warrants and finder’s warrants include an acceleration clause. This provision enables the company to expedite the expiration of the warrants if the average trading price of its shares exceeds $0.25 for ten consecutive days. If this occurs, the company can notify warrant holders, resulting in a new expiration date of thirty days following the notice.
All securities issued in this first tranche are subject to a statutory hold period of four months and one day after issuance. This requirement complies with National Instrument 45-102 – Resale of Securities and ensures adherence to regulatory standards. The offering is also pending approval from relevant regulatory bodies, including the Canadian Securities Exchange.
Company profile and future outlook
Nevada Organic Phosphate, based in British Columbia, is a junior exploration company with a significant organic sedimentary phosphate deposit in northeast Nevada. The identified phosphate bed extends approximately 6.6 kilometers, with the potential strike length exceeding 30 kilometers through further exploration.
This project ranks among the largest known organic sedimentary phosphate ventures in North America, strategically situated near key transportation routes, including the main highway to Montello/Elko, Nevada, and close to a railhead leading to California. This advantageous positioning could enhance future operations and distribution capabilities.
For further inquiries, interested parties can contact Robin Dow, CEO, at 604.355.9986 or via email at [email protected].
Previously announced on September 19 and September 23, the company issued a total of 26,040,000 units, with each unit priced at $0.05. The funds raised will primarily support initial drilling at the company’s Murdock Property and cover general operational expenses.0
Previously announced on September 19 and September 23, the company issued a total of 26,040,000 units, with each unit priced at $0.05. The funds raised will primarily support initial drilling at the company’s Murdock Property and cover general operational expenses.1
