- Mining company Sirios Resources (SOI) intends to conduct a non-brokered private placement of units for up to C$2.1 million in proceeds
- The company plans to sell up to 14 million units at 15 cents each
- Each Sirios unit will contain one common share in the company, as well as half a common share purchase warrant
- The company will primarily use the proceeds to fund advances at its Cheechoo Gold Project, as well as general purposes
- Sirios Resources is up 3.7 per cent and is currently trading for 14 cents per share
Mining company Sirios Resources (SOI) intends to conduct a non-brokered private placement of units for up to C$2.1 million in proceeds.
The company’s proposed placement, which has been conditionally approved by the TSX Venture Exchange will be with accredited investors. Directors, officers, and employees of the company will be permitted to participate in the financing.
Through the placement, Sirios Resources plans to sell a maximum of 14 million units in the company. At a price of 15 cents per unit, a fully subscribed placement will result in up to $2.1 million in total proceeds.
Each Sirios unit will contain one common share in the company, as well as half of a common share purchase warrant. Each whole warrant will allow the holder to subscribe for one additional common share in the company, at 23 cents per share.
Warrant-holders will be able to exercise their warrants into common shares within 18 months of the private placement’s closing date. All securities which are issued through the financing will be subject to a hold period of four months and one day.
Sirios Resources will primarily use the proceeds from the private placement to fund advances at the company’s Cheechoo Gold Project. Just last week, the company announced a significant increase in its resource estimate for the project in Eeyou Istchee James Bay, Quebec.
The updated mineral resource estimated an additional 355,000 ounces of gold, an increase of approximately 22 per cent. It is likely that Sirios’ financing will assist the company to explore the property’s growing potential
Some of the placement’s funds may also go towards general corporate purposes.
Sirios Resources is up 3.7 per cent and trading for 14 cents per share, as of 9:30am EST.