Rapier Gold announces $2.5M private placement

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By Ted Liu

Rapier Gold Inc. (TSX-V: RPR) announced that it intends to close a non-brokered private placement of non-flow through (NFT) units at $0.10 per NFT unit and flow through (FT) units at $0.115 per FT unit, on a best efforts basis for aggregate proceeds of up to $2,500,000.

Secutor Capital Management Corp., as well as other parties, are acting as finders on this financing.

Each of the NFT units and FT units will include a transferable common share purchase warrant that will entitle the holder to purchase one common share at an exercise price of $0.15 for a period of 24 months.

Rapier Gold intends to use FT proceeds to incur Canadian Exploration Expenses on its Pen Gold Project located in the Province of Ontario, and NFT proceeds for general working capital.

Certain directors and officers of the Company may acquire securities under the private placement.

“The Company’s exploration strategy has been in process since early last year where the summer exploration program, designed to deliver high value drill targets, would be funded by capital raising in late 2016. This is consistent with the corporate presentations and information provided to the market and shareholders. There has been a significant delay in raising this funding which is directly attributable to the Company providing exclusivity to a company that presented a business transaction. In compliance with the conditions of that exclusivity, the Company refrained from raising funds while the Special Committee evaluated a proposal for a potential business transaction,” commented Roger Walsh, President of Rapier Gold.

photo credit: Rapier Gold