Nevada Organic Phosphate Inc., trading under the symbol CSE: NOP, has made significant progress in its funding efforts. The company, headquartered in British Columbia, focuses on the exploration of organic sedimentary phosphate. To enhance its exploration capabilities, NOP has announced the closure of its first tranche of a non-brokered private placement, raising a total of $1,302,000.
This financing resulted from the issuance of 26,040,000 units at a price of $0.05 per unit. Each unit consists of one common share, referred to as a Share, paired with a half-share purchase warrant, known as a Warrant. Holders of these warrants can purchase an additional share for $0.10 within five years following the issuance date.
Use of proceeds and future plans
The funds raised will support a comprehensive drilling program at the company’s Murdock Property, along with general operational expenses. The drilling initiative is set to commence in early October and aims for completion by the end of the month. Additionally, the company has allocated approximately $91,250 in fees and issued 1,825,000 finder’s units to various finders involved in this initial tranche.
Details of the finder’s units
Each finder’s unit includes one share plus a half-share purchase warrant—termed as Finder’s Warrant. This warrant allows the holder to acquire an additional share at the same price of $0.10 per Finder’s Warrant Share, valid for five years post-issuance. Notably, both the Warrants and Finder’s Warrants include an acceleration provision. This clause permits the company to shorten the expiration date of the Warrants if its common shares achieve a volume-weighted average price of $0.25 for ten consecutive trading days after the issuance date.
Regulatory considerations
All securities resulting from this tranche are subject to a statutory hold period of four months and one day from the issuance date, as outlined in National Instrument 45-102 regarding the resale of securities. It is important to note that the offering is pending necessary regulatory approvals, including that of the Canadian Securities Exchange.
Furthermore, none of the securities sold in connection with the first tranche will be registered under the U.S. Securities Act of 1933. Therefore, these securities cannot be offered or sold within the United States unless a registration statement is in effect or an exemption applies. This announcement does not serve as an offer to sell or solicit any offers to buy these securities in the U.S. or in any jurisdiction where such activities would be illegal.
About Nevada Organic Phosphate
Nevada Organic Phosphate is a junior exploration company that boasts a substantial organic sedimentary phosphate deposit measuring approximately 6.6 kilometers in length in northeastern Nevada. The company holds additional claims that could extend this phosphate bed’s potential strike to over 30 kilometers, positioning it as the only large-scale organic sedimentary phosphate project in North America. Conveniently located near the main highway connecting to Montello and Elko, Nevada, the project is also near the railhead leading to California, enhancing its logistical advantages.
Contact information
For further details or inquiries, interested parties can contact Robin Dow, CEO, via phone at 604.355.9986 or email at robin@dowgroup.ca.
Disclaimer: The Canadian Securities Exchange and its regulatory service providers have not reviewed or accepted responsibility for the accuracy of this release.
This news release may include forward-looking statements as defined by applicable securities laws. These statements involve risks and uncertainties that may lead to actual outcomes differing from expectations.