Eros Resources Secures $2.1 Million with Successful Financing
Eros Resources Achieves Successful Financing to Further Its Goals
Eros Resources Corp. is excited to announce a significant achievement in its growth journey by closing an oversubscribed private placement financing of C$2,077,500. This successful round not only reflects strong investor confidence but also surpasses the initial target by C$277,500, showcasing the robust belief in the company's potential.
Details of the Private Placement Financing
In this financing round, Eros has allocated and issued 41,550,000 units, priced at C$0.05 each, bringing in gross proceeds of C$2,077,500. Each unit comprises one common share and a warrant, giving investors the opportunity to convert them into additional shares at a future date. Specifically, each warrant allows for conversion into one common share at an exercise price of C$0.075 for three years post-closure, potentially creating new avenues of growth for the company and its stakeholders.
Understanding the Warrant Expiration
Notably, if the company's shares close at or exceed C$0.10 for ten consecutive trading days within four months of the warrant issuance, Eros reserves the right to accelerate the expiration of these warrants. This move is to ensure optimal management of shareholder value and can adjust the expiration to a date at least 30 days from the announcement.
Insider Participation and Related Transactions
The insiders of Eros, including key management and board members, have shown their commitment by subscribing for a total of 5,800,000 units, contributing gross proceeds of C$290,000. This involvement is categorized as a related party transaction and reflects the insiders' confidence in the company's future prospects. To comply with regulations, Eros will rely on certain exemptions concerning formal valuations and shareholder approval, given that insider participation remains below the set threshold.
Use of Funds from the Financing
The net proceeds from this financing initiative will primarily be routed towards general working capital and exploration activities aimed at advancing Eros's existing projects. With notable projects underway in Saskatchewan, including significant gold and copper ventures, the financing plays a critical role in bolstering the company's operational capabilities.
Company Overview and Future Potential
Eros Resources Corp. is a publicly traded mineral exploration company that focuses on acquiring and developing mineral properties across Canada. The company boasts an extensive portfolio, including considerable gold and copper projects in Saskatchewan, strategically positioned to tap into the region's mineral wealth. The La Ronge Gold Belt hosts two distinct gold properties spanning an impressive 35,175.6 hectares, while the Knife Lake constitutes a promising copper project entirely owned by Eros.
Contact Information for Inquiries
For further information regarding Eros Resources Corp., interested parties can reach out to Jonathan Wiesblatt, the Chief Executive Officer. He can be contacted via email. Additionally, for general inquiries, Andrew Ramcharan from Corporate Communications is also available. Eros's official contact details include a telephone number for direct communication, ensuring accessibility for investors and stakeholders alike.
Frequently Asked Questions
What is the total amount raised in Eros's recent financing?
Eros Resources Corp. successfully raised C$2,077,500 in its private placement financing.
How many units were issued in this financing round?
The company issued a total of 41,550,000 units during the financing.
What does each unit consist of?
Each unit includes one common share and one common share purchase warrant.
What is the significance of the warrant expiration?
If the share price exceeds C$0.10 for ten consecutive days, Eros can accelerate the warrants’ expiration, ensuring timely management of shareholder assets.
How will the proceeds affect Eros’s exploration efforts?
The funds raised will be utilized for general working capital and to support ongoing exploration projects in Saskatchewan.
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