Business
Decade Resources Closes Private Placement Financings for Total Gross Proceeds of $2,970,000
Stewart, British Columbia--(Newsfile Corp. - September 13, 2023) - Decade Resources Ltd (TSXV: DE...
About this update from Decade Resources Ltd.
[{"type":"text","content":"Decade Resources Closes Private Placement Financings for Total Gross Proceeds of $2,970,000Stewart, British Columbia--(Newsfile Corp. - September 13, 2023) - Decade Resources Ltd (TSXV: DEC) (\"Decade\" or the \"Company\") announces that it has closed its previously announced private placement financings.8,250,000 flow through units were purchased on a bought deal private placement basis at a price of $0.24 per unit, for aggregate gross proceeds of $1,980,000 (the \"Brokered Financing\").2,749,998 flow through units were purchased at a price of $0.24 per unit, for gross proceeds of $660,000, and 1,650,000 non-flow-through units were purchased at a price of $0.20 per unit, for gross proceeds of $330,000. (the \"Non-Brokered Financing\").The Company raised total gross proceeds of $2,970,000 from the Brokered Financing and the Non-Brokered Financing (together, the \"Offering\").The share included in the non-flow-through unit is a common share.The share included in the flow-through unit is a \"flow-through share\" as defined in the Income Tax Act (Canada).Both the non-flow-through unit and the flow-through unit included one transferable warrant exercisable for the purchase of one additional common share, at a price of $0.32 per share, for 2 years.Directors of the Company acquired 1,250,000 flow-through units for $300,000 and 655,000 non-flow-through units for $131,000. These transactions are considered to be related party transactions, as defined under Multilateral Instrument 61-101. However, they are exempt from the formal valuation and minority shareholder approval requirements as neither the fair market value of the shares issued to, or the consideration paid, exceed 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.Proceeds from the sale of flow-through units will be utilized for incurring flow through expenses that qualify as \"Canadian exploration expenses\" and \"flow through critical mineral mining expenditures\" as defined in the Income Tax Act (Canada). Flow-through proceeds will primarily be spent on the Nobody Knows Copper property, with a smaller portion to be spent on the Red Cliff property.Proceeds from the sale of non-flow-through units will be used to pay Offering expenses, and for general corporate purposes.In connection with the Offering, Decade paid finder's fees of $2...