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Delta Resources Closes C$10 Million Bought Deal Private Placement of Flow-Through Units and Units
Kingston, Ontario--(Newsfile Corp. - May 17, 2023) - Delta Resources Limited (TSXV: DLTA) ("Delt...
About this update from Delta Resources Limited
[{"type":"text","content":"Delta Resources Closes C$10 Million Bought Deal Private Placement of Flow-Through Units and UnitsKingston, Ontario--(Newsfile Corp. - May 17, 2023) - Delta Resources Limited (TSXV: DLTA) (\"Delta Resources\" or the \"Company\") is pleased to announce the closing of its previously announced \"bought deal\" private placement of (i) 7,143,000 \"flow-through\" units of the Company (the \"FT Units\") at a price of $0.63 per FT Unit for gross proceeds of $4,500,090; and (ii) 12,222,400 units of the Company (the \"HD Units\" and, together with the FT Units, the \"Units\") at a price of $0.45 per HD Unit for gross proceeds of $5,500,080, for aggregate gross proceeds to the Company of $10,000,170, which includes the exercise in full of the Underwriters Option (collectively, the \"Offering\"), pursuant to an underwriting agreement (the \"Underwriting Agreement\") with Cormark Securities Inc., as lead underwriter, on behalf of a syndicate of underwriters including Desjardins Securities Inc. and Haywood Securities Inc. (collectively, the \"Underwriters\").Each HD Unit consists of one common share in the capital of the Company (each an \"HD Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each FT Unit consists of one common share in the capital of the Company (each, an \"FT Share\") and one-half of one Warrant, each of which will qualify as a \"flow-through share\" within the meaning of the Income Tax Act (Canada). Each Warrant entitles the holder to purchase one common share in the capital of the Company (each, a \"Warrant Share\") at a price of $0.63 for a period of two years following the closing of the Offering. For greater certainty, the proceeds from the exercise of the Warrants will not be flow-through eligible. The HD Shares, FT Shares, Warrants and Warrant Shares will be subject to a four-month hold period ending on September 18, 2023.The net proceeds from the issue of the HD Units will be used for working capital and general corporate purposes. The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Units, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible \"Canadian exploration expenses\" that qualify as \"flow-through mining expenditures\" as both terms are defined in the Income Tax Act (Canada) and \"eligib...