Natan Resources Ltd Announces Increase of Brokered Private Placement to 4Million
– Momentum Public Relations –
Press Release: December 07, 2016
Mr. Steve Roebuck reports
In consultation with First Republic Capital Corp., lead agent to the financing, Natan Resources Ltd. has expanded its brokered private placement as previously announced on Nov. 18, 2016. Pursuant to the offering, the company now intends to issue: 10 million subscription receipts, at a price of 20 cents per subscription receipt, for total gross proceeds of $2-million; and eight million flow-through shares, at a price of 25 cents per flow-through share, for total gross proceeds of $2-million.
Each subscription receipt is automatically exchangeable into units of the company, on the basis of one unit for each subscription receipt, upon the occurrence of certain events, including without limitation, the company having received all approvals of the TSX Venture Exchange to acquire the Montalembert property from Globex Mining Enterprises Inc.
Each unit will consist of one common share and one-half of one common share purchase warrant, with each warrant being exercisable to acquire one common share of the company at a price of 30 cents for a period of 24 months following the closing date of the offering.
In connection with the offering, the agent will be entitled to a corporate finance fee in an amount equal to 2 per cent of subscription receipts and flow-through shares sold and a sales commission of 7 per cent of the aggregate gross proceeds of the subscription receipts and flow-through shares sold. Additionally, the company will issue to the agent corporate finance options entitling the agent to purchase a number of common shares equal to 2 per cent of the aggregate number of subscription receipts and flow-through shares sold and selling compensation warrants entitling the agent to purchase a number of common shares equal to 7 per cent of the aggregate number of subscription receipts and flow-through shares sold, at an exercise price equal to the offering price for 24 months following the date of closing the offering.
Completion of the offering is subject to receipt of TSX Venture Exchange approval and other requisite approvals. All of the securities issuable in connection with the offering will be subject to a hold period expiring four months and one day after date of issuance.
The proceeds from the sale of flow-through units will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)) and will be renounced for the current taxation year.