Business
Western Star Resources Enters into Investment and Advisory Agreement with Crescita Capital for $5 Million in Equity Capital
September 12, 2023 - TheNewswire - Western Star Resources Inc. (CSE:WSR) (“Western Star” or the “Company”) is pleased to announce that it has entered into an in
About this update from Western Star Resources, Inc.
[{"type":"text","content":"September 12, 2023 - TheNewswire - Western Star Resources Inc. (CSE:WSR) (“Western Star” or the “Company”) is pleased to announce that it has entered into an investment and advisory agreement (the “Agreement”) with Crescita Capital LLC (“Crescita”) pursuant to which Crescita will (i) provide certain advisory services (the “Advisory Services”) to the Company and (ii) make available to the Company a non-revolving equity drawdown facility in the aggregate amount of up to $5 million (the “Equity Investment Facility”), representing major institutional backing for Western Star. “Blake Morgan, CEO of Western Star, states “With such a large backing of institutional funding at such an early stage, the Agreement and, specifically, the Equity Investment Facility shows the confidence in the Western Star management team and assets. This funding will give the Company the opportunity to aggressively advance its assets towards a maiden drill program. The Company plans to have an update in regard to exploration programs, drill permits and drill program very soon.” Equity Investment Facility The Equity Investment Facility is for an aggregate amount of $5 million and Western Star will have three years to utilize the $5 million to expand and develop its assets. Pursuant to the Agreement, Western Star can draw down funds from the Equity Investment Facility from time to time during the three-year term at Western Star’s discretion by providing a notice to Crescita (a “Drawdown Notice”) and issuing common shares to Crescita in exchange (each drawdown, a “Private Placement”). The shares issued in connection with any Private Placement will be priced at 85% of the average closing bid price over the ten days of trading following the Drawdown Notice (the “Pricing Period”). The amount requested in each Drawdown Notice cannot exceed 500% of the average daily trading volume of the Pricing Period. Pursuant to the Agreement, the Company will (i) pay Crescita an up-front commission of $250,000, representing 5% of the amount available under the Equity Investment Facility, which shall be paid through the issuance of 1,666,666 common shares of the Company at a deemed price of $0.15 per share and (ii) issue Crescita 869,800 warrants of the Company, representing 5% of Western Star’s current number of outstanding shares, each at an exercise price of $0.15 per share for...