Comstock Metals (CSL.V) has successfully closed its previously announced private placement, raising just over C$600,000 in hard dollars by issuing units at C$0.05. Each unit consists of one common share as well as a full warrant, with each warrant entitling the warrant holder to acquire an additional share in the company at C$0.10 for a period of 24 months.
Comstock Metals is going in a new direction as the market doesn’t seem to care too much about the gold exploration properties in Saskatchewan and the Yukon Territory. Acquiring a cobalt project in Canada’s renowned Cobalt camp was a first step, but the company has also been hinting at acquiring lithium brine assets in the USA.
Raising C$600,000 in a tough market isn’t easy, but the company succeeded in its efforts, and when we look at who participated, we feel encouraged about the strong support from insiders. Select Sands acquired 2.64 million units, whilst Robert Luffman also purchased 1.76 million shares. Another encouraging sign is to see interim CEO Steven Goldman investing an additional C$50,000 in Comstock by acquiring an additional million units.