- San Marco Resources (TSXV:SMN) is increasing its previously announced private placement to C$3.5 million following significant institutional interest
- The company had previously intended to raise up to $2 million, but has now increased the offer only a day later
- Under the placement, San Marco intendeds to issue charity flow-through units at a price of 34 cents each and flow-through units at a price of 26 cents each
- The proceeds will be used to fund an exploration program at the company's Buck Property in British Columbia
- San Marco Resources (SMN) is up 7.41 per cent and is trading at 29 cents per share
San Marco Resources (TSXV:SMN) is increasing its previously announced private placement to C$3.5 million following significant institutional interest.
According to an original announcement released yesterday, the Vancouver-based company had intended to raise up to $2 million.
It's not known how many units will be issued under the non-brokered placement, but a number of charity flow-through units will be issued at a price of 34 cents each, along with regular flow-through units at a price of 26 cents each.
These units will consist of one flow-through common share and half of one common share purchase warrant. Each whole warrant will be exercisable at a price of 34 cents for a period of 24 months from the date of issuance.
However, should San Marco's shares trade at or above a price of 70 cents for a period of 10 consecutive trading days, the expiry date of the warrants may be brought forward.
Eventus Capital has been appointed a finder in connection with the placement, and will receive a cash fee worth 7 per cent of the total amount raised, as well as compensation warrants worth 7 per cent of the total amount issued.
The proceeds raised under the placement will be used to fund a recently announced exploration program at the company's Buck Property in British Columbia.
Bob Willis, CEO of San Marco Resources, said he is pleased with the strong institutional investor interest in the company's projects.
"I thank all investors for their support and look forward to the continued work on the property, including an initial 10,000 metres of drilling anticipated to begin this summer," he added.
Located in north-central British Columbia, the gold-silver-zinc property covers a total of 15,000 hectares. Pursuant to an announcement dated July 16, 2019, San Marco has the option to acquire a 100 per cent interest in the Bucks property.
Field crews have already been mobilised to begin on-site reconnaissance and a team of geologists is expected to arrive shortly.
The summer program is expected to include geological mapping, structural analysis and geochemical sampling of priority exploration targets. These targets were previously identified through the evaluation of historic geological, geochemical and geophysical data compiled by San Marco's technical team.
San Marco Resources (SMN) is currently up 7.41 per cent and is trading at 29 cents per share at 11:38am EDT.