Eastmain Resources Upsizes Previously Announced Private Placement Financing to C$3.0 Million
Eastmain Resources Inc. (TSX:ER, OTCQB:EANRF) (“Eastmain” or the “Company”) is pleased to announce that it intends to upsize its previously announced non-brokered private placement (the “Offering”) to accommodate demand from shareholders (see news release dated February 20, 2020). The Offering has increased to provide for aggregate gross proceeds of up to $3.0 million, comprised, in part, of a minimum of C$875,000 of units of the Company (“Hard Units”) at a price of $0.10 per Hard Unit. The remaining balance will be comprised of any combination of Hard Units and flow-through shares of the Company in any combination of Quebec flow-through common shares of the Company (the “Quebec FT Shares”) at a price of $0.12 per Quebec FT Share, and federal flow-through common shares of the Company (the “Federal FT Shares”) at a price of $0.115 per Federal FT Share.
Each Hard Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company for 2 years from the closing of the Offering (the “Closing”) at a price of $0.13.
The net proceeds from the sale of the Hard Units will be used to fund the exploration and development of the Company’s Québec mineral concessions and for general corporate and working capital purposes. The gross proceeds received by the Company from the sale of the FT Shares will be used to incur Canadian Exploration Expenses (“CEE”) that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s properties in Québec, which will be renounced to the subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Quebec FT Shares and Federal FT Shares.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Toronto Stock Exchange.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.