Signature Resources (TSX-V:SGU) has closed a C$609,000 ($619,100) private placement to fund regional gold exploration in Ontario, Canada.
The company issued approximately 11.31 million flow-through units priced at C$0.045 each, plus 2.5 million non-flow-through units at C$0.04 per unit.
Each unit contains one Signature common share and half of a common share purchase warrant. Each whole warrant can be exercised into shares at C$0.08 for 12 months.
Company insiders bought direction and control over 26% of the offering.
Around 75% of the net proceeds will be used for an early exploration field program on high-priority regional prospects in Northwestern Ontario, Signature says.
The company expects to allocate another 17% of the funds for metallurgical test work on its flagship Lingman Lake Gold Project.
The remaining proceeds will be used for working capital, it adds.
Signature Resources is a Canadian-based exploration company focused on expanding the 100%-owned Lingman Lake gold deposit in the Red Lake district of Ontario.
Write to Jackson Chen at Mining.com.au
Image: Signature Resources
