Lots of $$ for drilling
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2020) - Canadian Palladium Resources Inc. (CSE: BULL) (FSE: DCR1) (formerly 21C Metals Inc.) ("Canadian Palladium" or the "Company") is pleased to announce that it has closed its previously announced private placement, with Eight Capital acting as agent for the Company, raising aggregate gross proceeds of $3,391,170 through a combination of units (the "Units") and flow-through common shares (the "FT Shares") of the Company. The Company issued a total of 13,878,000 FT Shares at a price of $0.135 per FT Share and a total 12,647,000 Units at a price of $0.12 per Unit, which included the exercise by Eight Capital of an over-allotment option for the issuance of an additional 4,313,600 Units at a price of $0.12 per Unit.
Each Unit consists of one non-flow-through common share of the Company (a "Share") and one non-flow-through common share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.18 for a period of 36 months following the closing date.
The Company intends to use the net proceeds of the Offering to advance the exploration program on the Company's East Bull palladium property, and for working capital and general corporate purposes.
The gross proceeds from the sale of the FT Shares will be used for expenditures which qualify as "Canadian exploration expenses" ("CEE") and "flow-through mining expenditures" both within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE with an effective date of no later than December 31, 2020.
As consideration for its services, the Company paid Eight Capital a cash commission of $148,604 and an advisory fee of $22,400 and issued to Eight Capital an aggregate of 1,118,250 compensation warrants and 185,500 advisory warrants. Each compensation warrant and each advisory warrant shall entitle the holder thereof to acquire one Unit at a price of $0.12 for a period of 24 months from the closing date.