Element 29 Resources (ECU.V) has announced it is planning to complete a C$3.5M financing consisting of 7 million units priced at C$0.50 per unit. Each unit will consist of one common share of the company as well as half a warrant with each full warrant allowing the warrant holder to acquire an additional share for C$0.70 during a three year period.
The proceeds of this financing, likely in combination with the proceeds from the in-the-money warrants that expire before the end of the quarter, will allow the company to add north of C$8M to its treasury (assuming the C$3.5M placement will be fully subscribed and assuming all warrants expiring in September this year will be exercised). This will put the company in a good position to kick off its Phase III drill program on its flagship Elida porphyry project in Peru.
Disclosure: The author has a long position in Element 29 Resources. Element 29 is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
