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Para Resources Announces Close of Over-Subscribed Private Placement - $1.6M Raised
Vancouver, British Columbia--(Newsfile Corp. - February 15, 2018) - Para Resources Inc. (TSXV:...
About this update from Soma Gold Corp.
[{"type":"text","content":"Para Resources Announces Close of Over-Subscribed Private Placement - $1.6M RaisedVancouver, British Columbia--(Newsfile Corp. - February 15, 2018) - Para Resources Inc. (TSXV: PBR) (WKN: A14YF1) (OTC Pink: PRSRF) (the \"Company\" or \"Para\") is pleased to announce that it has closed its non-brokered private placement (the \"Private Placement\") for total gross proceeds of $1,557,160. The Private Placement consisted of 7,785,800 units at a price of $0.20 per unit (each a \"Unit\"). Each Unit is comprised of one common share of the Company and one-half common share purchase warrant (each whole such warrant a \"Warrant\"). Each Warrant entitles the holder to acquire one common share of the Company for a period of 18 months at a price of $0.30, subject to an accelerated expiry if the closing trading price of the Company's shares is greater than $0.40 for a period of 10 consecutive trading days. The Company will give notice to the holders of the acceleration event and the warrants will expire eight days thereafter. All securities issued under the Private Placement bear a four month and one day hold period. Proceeds of the Private Placement will be used to complete engineering and process analysis at the Company's Gold Road Project in Arizona, for capital expenditures to complete the upgrade and improve efficiency during the \"ramp up\" of production at the Company's El Limon mine in Colombia and for general working capital.Three insiders of the Company participated in the Private Placement and subscribed for an aggregate of 6,330,800 Units for gross proceeds of $1,266,160. Participation of insiders of the Company in the Private Placement constitutes a related party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). Because the Company's shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.The Company did not file a material change report 21 days prior to the closing of the private placement as the details of the participation of insiders of the Company had not been confirmed at that time.ABOUT PARA RESOURCES:Para is a junior producing gold mining company. P...