Group Eleven Resources Corp (CVE:ZNG) (OTCMKTS:GRLVF) is poised to raise up to C$1 million in a private placing to advance exploration, including follow-up drilling at the recently discovered zinc-lead zone near Carrickittle in Ireland.
Group Eleven said it will issue over 16.6 million shares at C$0.06 each for gross proceeds of up to C$1 million. Each unit consists of one share and one half of a share purchase warrant, which entitles the holder to buy an additional company share for C$0.12 each for 36 months from the date of issue
READ: Group Eleven Resources hits best mineralization to date at Carrickittle prospect at PG West project, Ireland
"Proceeds from the offering will be used to fund exploration, including follow-up drilling at the company's recently discovered zinc-lead zone near Carrickittle in Ireland, as well as, general and administrative purposes," the firm said in a brief statement.
"The offering is subject to regulatory approval and all securities to be issued pursuant to the financing are subject to a hold period under applicable Canadian securities legislation that expires four months and one day after the closing date of the offering," it added.
On July 6, Group Eleven revealed that it had hit the best mineralization ever found at the prospect, which is part of its PG West project in the Republic of Ireland.
A drill hole intercepted 10.3 metres of 14.6% zinc, 5% lead (19.6% combined) and 43 grams per ton (g/t) silver starting at 56.3 metres downhole, the firm told investors.
"Carrickittle is a prospect that lay largely dormant for over 54 years after it was labelled as 'sub-economic' in 1966. The prospect, however, now clearly appears under-drilled and under-conceptualized – and requires immediate follow-up," Bart Jaworski, Group Eleven's chief executive said in a statement at the time.
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