Usha Resources and Totec Resources Complete Concurrent Financing for Gross Proceeds of $4,500,000
Totec Resources Ltd. (TSXV:TOTC.P) and Usha Resources Ltd. (TSXV:USHA)(OTC:USHAF) announced the closing of a private placement by 1540359 B.C. Ltd., Usha's wholly-owned subsidiary. The offering consisted of 30,000,000 units at $0.15 per unit, generating $4.5 million in gross proceeds.
Each unit comprises one common share and one warrant exercisable at $0.25 for two years. The financing precedes the sale of the subsidiary to Totec, which will include Usha's transfer of 489 mineral claims comprising the White Willow Property. This transaction constitutes Totec's qualifying transaction under TSX Venture Exchange rules.
Prior to closing, Totec will implement a 2:1 share consolidation. Upon completion, investors will receive one Totec share per subsidiary share held, with warrants automatically converting to Totec warrants on identical terms.
Finders received $146,122 in cash fees plus 974,143 non-transferable warrants exercisable at $0.25 for three years. Net proceeds will fund exploration at the Property and general working capital. The transaction remains subject to Exchange acceptance and satisfaction of other customary conditions.
Source: Investingnews — view original