Magna Terra Raises $3.75M for Exploration Projects
News related to:Magna Terra Minerals Inc · 2 min read
Magna Terra Minerals Inc., a precious and critical metals focused exploration company headquartered in Toronto, Canada, has announced the successful completion of its previously announced non-brokered private placement. The company raised gross proceeds totalling $3,750,000.80 through the issuance of 8,421,056 premium flow-through common shares at a price of $0.2375 per share and 10,000,000 common shares at a price of $0.175 per share.
The offering was a significant success, with the demand exceeding the initial target, resulting in an oversubscribed demand. The company expressed its gratitude to its largest shareholder, Michael Gentile, and several other long-term shareholders who participated in the Offering. The proceeds from the Offering will be used to fund exploration programs at key focus projects in Newfoundland and New Brunswick, as well as to advance the surface value of the company's portfolio of precious metals projects in Santa Cruz Province, Argentina.
The gross proceeds from the issuance of the premium flow-through common shares will be used to incur Canadian exploration expenses that qualify as flow-through mining expenditures related to the company's mineral exploration projects, primarily for exploration programs at the company's Humber and Shellbird Projects in western Newfoundland and the Prospect Or's Dream, Rocky Brook, and Cape Spencer Projects in New Brunswick.
Insiders of the company, including Michael Gentile and Patricia Kajda, participated in the private placement by acquiring an aggregate of 1,285,712 premium flow-through common shares for proceeds of $305,356.60, and 130,194 common shares for proceeds of $22,783.95. After the closing of the Offering, Gentile holds, directly and indirectly, or exercises control over 19,757,379 common shares (representing 15.6% of the outstanding common shares of the company), while Kajda holds 130,194 common shares (representing 0.1% of the outstanding common shares of the company), 150,000 restricted share units, and 1,050,000 stock options of the company.
In connection with the Offering, the company will pay a total of $96,663 in finder's fees and has issued 552,360 finders warrants to certain eligible finders, each exercisable into one common share of the company at a price of $0.2375 per common share for a period of 24 months from the date of issuance.
All securities issued pursuant to the Offering are subject to a regulatory four-month and one-day hold period. The Offering is subject to final approval by the TSX Venture Exchange.
The company's President and CEO, Lew Lawrick, expressed his satisfaction with the significant investor response and resulting oversubscribed demand for this upsized financing. The proceeds from the Offering will allow the company to continue to expedite exploration programs toward first phase drill programs on its key focus projects in Newfoundland and New Brunswick, as well as undertake key initiatives to surface value for its shareholders from the remainder of its deep project pipeline, specifically its portfolio of precious metals projects in Santa Cruz Province, Argentina.
The company will use the proceeds from the Offering to fund Canadian exploration expenses that qualify as flow-through mining expenditures related to the company's mineral exploration projects, primarily for exploration programs at the company's Humber and Shellbird Projects in western Newfoundland and the Prospect Or's Dream, Rocky Brook, and Cape Spencer Projects in New Brunswick. The proceeds will also be used to pay finder's fees and issue finders warrants to certain eligible finders.