Copper One Resources (CSE:CEXY) has closed a non-brokered private placement raising C$7.96 million ($8.02 million) through the issue of special warrants.
The company issued 12.38 million non-flow-through special warrants and 7.51 million flow-through special warrants, both priced at C$0.40 per warrant.
Each special warrant will automatically convert into one unit comprising one common share and half a warrant. The warrants carry an exercise price of C$0.50 and expire after two years.
However, this stipulation is subject to accelerated expiry should shares trade above C$1.25 for five consecutive days.
Conversion will occur within three business days of filing a prospectus supplement or four months and one day after closing, whichever comes first. The flow-through special warrants qualify as flow-through shares under Canadian tax legislation.
Copper One paid finder’s fees totalling C$403,072 and issued 1.01 million broker warrants exercisable at C$0.50 per share for two years.
The warrants include a 10% blocker provision. It prevents exercise should it result in a holder owning 10% or more of outstanding shares.
President and CEO David Greenway says the company will use proceeds for general working capital and exploration programs.
The special warrants were issued under prospectus exemptions, including accredited investor and C$150,000 minimum investment exemptions. Securities remain subject to a four-month hold period plus applicable restrictions.
The offering requires final regulatory approvals, including Canadian Securities Exchange approval. Securities have not been registered under US securities laws and cannot be offered or sold in the US without registration or exemption.
Copper One Resources is a Canadian explorer advancing a portfolio of copper, silver, and gold assets across North America.
Write to JC Villarba at Mining.com.au
Images: Copper One Resources
