TomaGold (LOT.V) on Wednesday said that, subject to the receipt of all required filings with and approvals from the TSX Venture Exchange, it plans to complete a non-brokered private placement for gross proceeds of up to $1.5 million.
The company said the offering will consist of up to 10 million flow-through (FT) units at a price of $0.075 each, and up to 12.5 million hard cash (HC) units at a price of $0.06 each. It added each HC unit will consist of one common share in the capital of the company and one-half of one share purchase warrant, with each whole warrant entitling the holder thereof to purchase one additional common share at a price of $0.10 for a period of 24 months from the date of issuance.
Each FT unit will consist of one common share in the capital of the company that will qualify as a "flow-through share" for the purposes of the Income Tax Act (Canada) and one-half of one warrant, said the company.
The company plans to use the gross proceeds from the sale of the FT units to incur exploration expenses that are eligible "Canadian exploration expenses" that qualify as "flow-through critical mineral mining expenditures", as such terms are defined in the Income Tax Act (Canada). It added that the net proceeds from the sale of the HC units will be used by the company for general and corporate working capital purposes.
The offering is subject to the approval of the TSXV.
The company's shares were last seen down $0.005 at $0.055 on the TSX Venture Exchange.