Minera Alamos Inc (CVE:MAI), the Mexico-focused metals explorer, announced Tuesday it will raise up to C$5 million in a non-brokered private placement offering.
The company said it would issue up to 50 million shares at a price of C$0.10 per share. The company said no warrants were being issued as part of the offering.
Minera is advancing three development projects in Mexico -- Santana, located in Sonora state, while the La Fortuna and Guadalupe De Los Reyes properties are in Durango.
Under the terms, shares issued will be subject to a four-month hold period from the closing date and is expected to occur on or around March 1.
The company said finders fees may be paid in the form of a 6% cash fee and the issuance of finder's warrants in an amount equal to 6% of the shares placed with subscribers introduced by any finder under the offering. Finders warrants will be exercised for one share at C$0.10 for a period of two years, following the close of the offering.
Minera shares were up 4.5% at C$0.12 on Tuesday.