Pele Mountain Announces Closing of Financing with MineralFields Group
Pele Mountain Resources Inc. announce that it has closed a non-brokered private placement offering with MineralFields Group for an aggregate of 4,166,666 flow-through units in the capital of the Company at a purchase price of $0.12 per Unit for gross proceeds of $500,000. Each Unit is comprised of one (1) common share on a flow-through basis (as that term is defined in the Income Tax Act (Canada)) and one half (1/2) transferable Series FF purchase warrant issued for nominal consideration, where each whole Series FF Warrant is exercisable for a period of twelve (12) months after closing to purchase one (1) additional common share of Pele at a purchase price of $0.25 per share.
In connection with the Offering, Pele paid a cash fee to eligible registrants in the aggregate amount of $32,500 and also issued a total of 291,666 compensation options (the “Compensation Options”). Each Compensation Option is exercisable for 12 months from closing to purchase up to 291,666 Units at a price of $0.11 per Unit.
The securities issued pursuant to the Offering will all be subject to a four (4) month statutory hold commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.
All proceeds raised under this Offering will be used by Pele to finance qualified Canadian exploration and development expenditures on its Canadian resource properties. All costs associated with the Offering will be paid by the Corporation from its general funds.