Group Eleven Resources Corp (CVE:ZNG) (OTCMKTS:GRLVF) announced Friday that it has entered into a subscription agreement with Glencore Canada Corporation on a private placement which will occur in two tranches.
Group Eleven is a mineral exploration company focused on zinc exploration in Ireland. The company's key project in Ireland is a 76.56% interest in the Stonepark project, a joint venture with Arkle Resources PLC (LON:ARK) and a 100% interest in the adjacent PG West Project, located near Limerick, next to the Pallas Green zinc project, which hosts one of the world's largest undeveloped zinc deposits.
Glencore is the owner of the Pallas Green project which hosts a deposit with an estimated mineral resource of 45.4 million tonnes of 7% zinc and 1% lead in the inferred category.
“Subject to TSX-V and shareholder approval, Glencore will invest a total of $750,000 to purchase 15,000,000 units in the capital of the company at a price of $0.05 per unit,” Group Eleven said in a statement.
The Vancouver-based company said the offering consists of 15,000,000 units at a price of C$0.05 per unit for aggregate gross proceeds of C$750,000, to be completed in two tranches.
Each unit will consist of one share and one half of one non-transferrable share purchase warrant; each warrant will entitle the holder to buy one additional share at a price of $0.10 per share for 36 months from the date of issue.
The private placement will occur in two tranches - the first tranche of 2,200,000 units (C$110,000) is expected to close by May 21, while the remaining 12,800,000 units (C$640,000) is expected to close around late June this year. Group Eleven said this is contingent on shareholder approval as the placement makes Glencore a "control person" as it will end up with 19.99% of the group's outstanding shares.
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