- Comstock Metals (TSXV:CSL) has completed a non-brokered private placement for gross proceeds of approximately C$254,000
- The company issued a total of 3.39 million units at a price of 7.5 cents each
- These units consist of one common share in the company and one common share purchase warrant
- The proceeds will be used for general working capital purposes
- Comstock Metals (CSL) is up 13.04 per cent and is trading at 13 cents per share
Comstock Metals (TSXV:CSL) has completed a non-brokered private placement for gross proceeds of approximately C$254,000.
Headquartered in Vancouver, the diversified mineral exploration company is currently focused on advancing its wholly owned North American projects, and holds interests in several companies with large mineral resources.
These interests include a one million-share stake in E3 Metals, as well as a stake in White Gold Corporation to the value of 1,387,210 common shares. Comstock also holds 350,625 share purchase warrants in White Gold, exercisable at a price of $1.50 and expiring on February 28, 2022.
Under the private placement, Comstock issued a total of 3.39 million units at a price of 7.5 cents each. These units are comprised of one common share in the company and one common share purchase warrant.
Each of these warrants entitle the holder to acquire an additional common share at a price of 7.5 cents, exercisable over a period of 36 months from the date of closing.
Comstock Metals says the proceeds generated under the offering will be used for general working capital purposes.
As part of the placement, certain insiders of the company subscribed to purchase units.
This includes Steven Goldman, President and CEO of Comstock Metals, along with his wife, who subscribed for an aggregate 800,000 units.
With the placement now complete, Steven owns a total of 1.2 million common shares in the company, representing approximately 5.5 per cent of the total issued and outstanding amount.
Arnold Tenney, Chairman of the company, also purchase a total of 133,333 units. This amounts to a total holding of 288,333 common shares, or roughly 1.3 per cent of the total amount issued and outstanding.
Finally, SJ Strategic Investments, Gracetree Investments, Gregory Asset Partners and the Gregory Irrevocable Equalising Trust, which together represent a controlling entity of the company, purchased a total 1,691,240 units. This affords a total position of 4.84 million common shares, representing 22.1 per cent of the company.
Comstock Metals (CSL) is up 13.04 per cent and is trading at 13 cents per share at 3:22pm EDT.