The Conversation (2)
Almaden Minerals (TSX:AMM) has closed a non-brokered private placement for proceeds of $3.38 million. Proceeds from the placement will be used to fulfil the near-term payments relating to the recently-optioned Rock Creek mill, to continue to advance its Ixtaca deposit towards the completion of advanced engineering studies, and for general working capital.
Almaden Minerals (TSX:AMM) has closed a non-brokered private placement for proceeds of $3.38 million. Proceeds from the placement will be used to fulfil the near-term payments relating to the recently-optioned Rock Creek mill, to continue to advance its Ixtaca deposit towards the completion of advanced engineering studies, and for general working capital.
As quoted in the press release:
Each Unit consists of one common share of the Company and one-half of one non-transferable common share purchase warrant (each such whole share purchase warrant, a “Warrant”). Each Warrant allows the holder to purchase one common share of the Company at a price of $1.00 per share until November 17, 2017. Fees consisting of $44,000 in cash and warrants to purchase up to 35,200 common shares at a price of $0.77 per common share until November 17, 2017 were paid to finders on a portion of the placement.
Duane Poliquin, Chairman of the Board of the Company, acquired 100,000 Units under the private placement. Such participation in the private placement is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units issued to, nor the consideration paid by Mr. Poliquin exceeds 25% of the Company’s market capitalization.