Essex Minerals Inc (CVE:ESX) said Tuesday it has closed its non-brokered private placement, raising C$2.75 million in gross proceeds to fund its mineral projects and exploration expenses.
The company issued 5 million common shares at C$0.55 each. All of the securities are subject to a hold period, which will expire January 22, 2021.
Essex Minerals paid finders' fees in connection with the financing consisting of C$0.06 a share in cash or common shares and 6% finders' share purchase warrants entitling the holders to purchase one common share at C$0.55 each for two years.
READ: Essex Minerals hits high-grade gold and silver with first drill hole at Queensland project
The company said it paid C$2,475 cash, 54,600 shares and 59,100 finders' warrants to Primary Capital Inc, C$68,310 cash and 124,200 finders' warrants to Goodman & Company Investment Counsel Inc, 56,600 shares and 54,600 finders' warrants to Clarus Securities Inc, and 62,100 shares and 62,100 finders' warrants to Canaccord Genuity (Australia) Ltd.
Directors and officers of the company did not participate in the financing due to strong demand from institutional investors, Essex Minerals added.
Essex Minerals operates a gold and silver project at its Cumberland property in North Queensland, Australia, where it kicked off a diamond drilling program in July. The Cumberland property has four granted exploration permits covering 25,024 hectares, 70 kilometres northwest of the former 3.5-million-ounce Kidston gold mine.
Essex Minerals, based in Vancouver, is focused on mineral exploration and development opportunities where it can adopt an option earn-in and joint venture model.
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