Business
Falco Resources Announces Closing of C$8.5 Million Flow-Through Financing
MONTREAL, QC--(Marketwired - December 21, 2017) - Falco Resources Ltd. ("Falco" or the "Company") (TSX VENTURE: FPC) is pleased to announce it has closed the pr
About this update from Falco Resources Ltd.
[{"type":"text","content":"MONTREAL, QC--(Marketwired - December 21, 2017) - Falco Resources Ltd. (\"Falco\" or the \"Company\") (TSX VENTURE: FPC) is pleased to announce it has closed the previously announced private placement financing of flow-through shares (\"Flow-Through Shares\") at an issue price of C$1.18 per Flow-Through Share to raise aggregate proceeds of approximately C$8.5 million (the \"Offering\"), which includes the exercise in full of the agents' option. The Offering was conducted by a syndicate of agents led by Canaccord Genuity Corp. and including Desjardins Securities Inc. and Raymond James Ltd. (collectively, the \"Agents\"). The proceeds from the Offering will be used for Canadian Exploration Expenses (CEE) and will qualify as \"flow-through mining expenditures\" under the Income Tax Act (Canada), and also qualify for the two 10% enhancements under the Taxation Act (Quebec), which will be renounced to the subscribers with an effective date of no later than December 31, 2017 to the initial purchasers of Flow-Through Shares in an aggregate amount not less than the proceeds raised from the issue of the Flow-Through Shares. The proceeds of the Offering will be used by the Company to advance exploration works at the Donalda property and the surrounding Horne 5 Project properties. Certain directors and officers of Falco or of an insider of Falco have participated in the Offering and were issued Flow-Through Shares. Such participation in the Offering constitutes \"related party transactions\" as defined in Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (\"61-101\"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of 61-101 as neither the fair market value of the securities issued to insiders nor the consideration paid for such securities by insiders exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to closing of the Offering as the participation of insiders of the Company in the Offering had not been confirmed at that time. The Offering was completed on a private placement basis pursuant to prospectus exemptions under applicable securities laws and is subject to final acceptance by the TSX Venture Exchange. The Flow-Through Shares issued under the Offering will be subject to a ho...