Metanor raises $11.5M led by Eric Sprott

CPE News

Val-D’or, QC (pcJ News Briefs) – Metanor Resources Inc. (TSX-V: MTO) has completed previously announced private placement of 179,200,516 units at $0.06 per unit for gross proceeds of $10,752,030.96 and 9,973,000 flow-through (FT) shares at $0.075 per FT share for proceeds of $747,975.

The offering was made through a syndicate led by Red Cloud Klondike Strike Inc. and included Sprott Capital Partners, a division of Sprott Private Wealth LP.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.09 per share until March 21, 2019.

Net proceeds will be used for mining development and exploration at the Barry project and, for general working capital purposes. The gross proceeds from FT shares will be used to incur resource exploration expenses on Metanor’s exploration properties.

Eric Sprott, through 2176423 Ontario Ltd., acquired 62,570,000 units pursuant to the offering (approximately 10.0% of the issued and outstanding shares on a non-diluted basis and 14.2% on a partially diluted basis) for total consideration of $3,754,200. Prior to the offering, Sprott beneficially owned 18,698,000 common shares and 20,000,000 warrants (approximately 4.3% of the then outstanding shares and 8.4% on a partially diluted basis). Sprott now holds directly and indirectly 81,268,000 shares and 51,285,000 warrants (approximately 12.9% of the issued and outstanding shares on a non-diluted basis and 19.5% on a partially diluted basis).

Two directors of Metanor Resources participated in the offering; 9071 8776 Quebec Inc., an entity controlled by Tristram Coffin, acquired 8,000,000 units for a consideration of $480,000. Coffin now holds 11,365,965 common shares. Michel Fontaine acquired 335,316 units, he did not hold any shares prior to the offering.

photo credit: Metanor Resources