Berkwood Resources Ltd (CVE:BKR) announced a private placing to raise up to C$800,000 to be used for exploration in Quebec and for working capital. 

The firm said up to 16 million share units of the company will be offered at 2.5 Canadian cents each to raise gross proceeds of up to C$400,000. 

Meanwhile, up to over 13.3 million flow-through units will be offered at 3 cents each, for gross proceeds of up to C$400,000, it added.

In the share unit offering, each unit consists of one common share and one share purchase warrant, with each full warrant entitling the holder to acquire one share for five cents for 24 months.

In the flow through unit offering, similarly each will consist of one flow-through share and one share purchase warrant, with each warrant entitling the holder to acquire one share at five cents each for 24 months.

Berkwood said it intends to use the C$400,000 flow-through proceeds for exploration at its Lac Gueret property, Quebec, and C$400,000 working capital will be allocated in various ways, including C$45,000 for office rent, C$40,000 on marketing, and C$40,000 on travel, the firm said.

The company also noted in the regulatory statement that it would be making an application to the TSX Venture Exchange for a waiver to the private placement price, as the proposed subscription price is below the minimum allowed.