Orefinders Resources (TSXV: ORX) has closed the flow-through portion of its previously announced private placement for aggregate proceeds of approximately C$619,000.
Upon closing of the offering, the company issued around 8.84 million units at a price of C$0.07 per unit, where each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of C$0.08 for a period of 24 months from the date of issuance.
Mining investor Eric Sprott acquired 7.14 million of those units, increasing his ownership in the company’s capital to just over 20 million common shares and 10 million warrants, representing approximately 11.89% of those outstanding on a non-diluted basis and 16.84% on a partially diluted basis.
Sprott recently became a shareholder of Orefinders when he participated in the company’s C$1.49 million private placement in February, acquiring 8.07% of the company’s outstanding stock on a non-diluted basis and 11.64% on a partially diluted basis.
Orefinders is currently developing gold assets in Ontario’s Abitibi Greenstone Belt, including the McGarry, Knight and Mirado projects.