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Pelangio Exploration Completes First Tranche of Previously Announced Private Placement for Gross Proceeds of $734,000 and Further Increases Size of Private Placement
This News Release is Intended for Distribution in Canada Only and is not Intended for Distri...
About this update from Pelangio Exploration Inc.
[{"type":"text","content":"Pelangio Exploration Completes First Tranche of Previously Announced Private Placement for Gross Proceeds of $734,000 and Further Increases Size of Private PlacementThis News Release is Intended for Distribution in Canada Only and is not Intended for Distribution to United States Newswire Services or Dissemination in the United StatesTORONTO, ON / ACCESSWIRE / May 19, 2020 / Pelangio Exploration Inc. (TSXV:PX)(OTC PINK:PGXPF) (\"Pelangio\" or the \"Company\") is pleased to announce that it has closed the first tranche of the non-brokered private placement previously announced on May 7, 2020 and May 11, 2020 (the \"Offering\"). In this first tranche, the Company raised aggregate gross proceeds of $734,000 (the \"First Tranche\") by issuing 5,000,000 hard dollar units (the \"HD Units\") at a price of $0.12 per HD Unit and 957,142 common shares of the Company issued on a flow-through basis (the \"FT Shares\") at a price of $0.14 per FT Share.Each HD Unit consists of one common share of the Company (a \"Common Share\") and one Common Share purchase warrant (\"Warrant\"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.18 for a period of two years from May 19, 2020 (the \"Initial Closing Date\"). The FT Shares will qualify as \"flow-through shares\" (within the meaning of the Income Tax Act (Canada)).The gross proceeds from the sale of the FT Shares will be used to incur qualifying Canadian Exploration Expenses. Qualifying expenses are to be incurred by no later than December 31, 2021 for renunciation to investors of FT Shares in the Offering effective December 31, 2020. The balance of the proceeds of the Offering will be used for general corporate and working capital purposes, and for the development of the Company's mining projects.In connection with the closing of the First Tranche, the Company paid finder's fees to Canaccord Genuity Corp., PI Financial Corp., Haywood Securities Inc., and Laurentian Bank Securities Inc., each arm's length finders, consisting of an aggregate of $28,560 in cash and an aggregate of 238,000 non-transferrable warrants (\"Finder Warrants\"). Each Finder Warrant entitles the holder to purchase one Common Share at a price of $0.18 for a period of one year from the Initial Closing Date.All securities issued in the First Tranche of the Offering, including the Finder Warrants, ...