Carlyle Commodities Corp (CSE:CCC, OTC:DLRYF) said it has arranged a non-brokered private placement consisting of the issuance of up to 1 million non-flow-through units of the company at a price of 25 cents per unit for gross proceeds of up to $250,000.
Under the placement, Carlyle said it has closed an initial tranche of 740,000 units for total gross proceeds of approximately $185,000.
The aggregate proceeds of the first tranche are anticipated to be used for general working capital.
Each unit consists of one common share in the capital of the company and one-half of one share purchase warrant, with each full warrant entitling the holder to purchase one additional share at a price of 37.5 cents per warrant share for a period of 36 months following issuance.
READ: Carlyle Commodities says its common shares have commenced trading on the OTCQB Venture Market
The warrants are subject to an acceleration provision whereby in the event the shares have a closing price on the Canadian Securities Exchange (CSE) – or such other exchange on which the shares may be traded at such time – of 50 cents or greater per share for a period of 10 consecutive trading days at any time from the date of issuance, the company may accelerate the expiry date of the warrants by giving notice to the holders by disseminating a news release advising of the acceleration of the expiry date of the warrants and, in such case, the warrants will expire on the 30th day after the date of such notice.
Cash fees of $14,000 were paid and 56,000 finder’s warrants were issued in connection with the closing of the first tranche in accordance with the policies of the CSE and applicable securities laws. Each finder’s warrant entitles the holder to purchase one share at an exercise price of 25 cents per finder’s warrant share for a period of 36 months following issuance.
All securities issued in connection with the offering, including those of the first tranche, will be subject to a statutory hold period expiring four months and one day after the date of issuance.
Carlyle is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties. The company owns 100% of the Newton project in the Clinton mining division of British Columbia.
Contact the author at jon.hopkins@proactiveinvestors.com