- Cerro de Pasco Resources (CSE:CDPR) has closed the second tranche of a private placement offering, after raising C$513,611 in proceeds
- The company issued 1.71 million common share units at a price of 30 cents during the tranche
- Each unit consists of one common share, and one purchase warrant allowing the holder to buy a share at 50 cents
- The company intends to use the proceeds from the offering for working capital purposes
- Cerro de Pasco Resources (CDPR) is down 3.12 per cent and is currently trading at 31 cents per share
Cerro de Pasco Resources (CSE:CDPR) has closed the second tranche of a private placement offering, after raising C$513,611 in proceeds.
During the second tranche, the company issued 1.71 million common share units, at a price of 30 cents per unit. Each unit consists of one common share in Cerro de Pasco Resources, and one common share purchase warrant.
One warrant entitles the holder to buy another common share in the company for $0.50 per share. The holder may do so within 24 months of the date of issuance, although the company can accelerate the expiry date.
Cerro de Pasco Resources may only accelerate this date if the average price of the company’s shares exceed $1.00 per share for 20 consecutive trading days. This would have to occur before the warrants expire in order for acceleration to take place.
Any securities issued through the offering are subject to a hold period of four months and one day from the issuance date.
Notably, one officer of the company purchased a total of 150,000 units during the second tranche. The officer’s participation constitutes a related party transaction.
Cerro de Pasco Resources has paid a finder’s fee of $5,994 to arm’s length third parties, in relation to the second tranche.
When combined, the first and second tranches of the offering produced aggregate gross proceeds of $1.66 million. The company intends to use the proceeds from the offering for general working capital purposes.
Cerro de Pasco Resources (CDPR) is down 3.12 per cent and is trading at 31 cents per share at 1:32pm EDT.
