pcNewsWire – Teras Resources Inc. (TSX-V: TRA) has increased the size of and subsequently closed previously announced non-brokered private placement, issuing 13,483,750 units at a price of $0.08 per unit for gross proceeds of $1,078,700.
The majority of the proceeds of the private placement will be reserved for a planned Diamond drill program at the company’s Cahuilla gold/silver project, as disclosed in the June 21, 2017 news release, and the balance of the proceeds will be used for general working capital.
Teras Announces Increase to and Closing of Unit Private Placement for Its Upcoming Drilling Program
Calgary, Alberta–(Newsfile Corp. – July 4, 2017) – Teras Resources Inc. (TSXV: TRA) (“Teras” or the “Company”): announces that it has increased the size of its previously announced non-brokered private placement of units (each a “Unit”). In addition, Teras announces that it has completed the closing of the private placement of Units, subject to final approval of the TSX Venture Exchange. Teras issued 13,483,750 Units at a price of $0.08 per Unit for gross proceeds of $1,078,700. Each Unit consists of one common share (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant is exercisable into one Common Share at a price of $0.15 per share for a period of one year from the issuance of such Warrant.
The majority of the proceeds of the private placement will be reserved for a planned Diamond drill program at the Company’s Cahuilla gold/silver project, as disclosed in the June 21, 2017 news release, and the balance of the proceeds will be used for general working capital. All securities issued in connection with the private placement are subject to a hold period that expires on October 31, 2017.
Officers and Directors of Teras, subscribed for a total of 140,000 Units, (directly or through entities controlled by them), under the private placement. Teras has determined that exemptions from the various requirements of Multilateral Instrument 61-101 are available for the issuance of the Units (Formal Valuation – Issuer Not Listed on Specified Markets; Minority Approval – Fair Market Value Not More Than $2,500,000).
Teras is focused on developing its Cahuilla project located in Imperial County, California. The project encompasses an area of at least 3 km by 1.5 km and Teras believes that the Cahuilla project has the potential to develop into a mining operation consisting of altered and mineralized sedimentary host rocks with numerous sheeted high-grade sheeted quartz veins. Teras filed a NI 43-101 technical report with an indicated resource of 1.0 million ounces of gold and 11.9 million ounces of silver on its Cahuilla project (70 million tons at an average grade of 0.015 ounces per ton gold and 0.17 ounces per ton silver with a cut-off of 0.008 ounces per ton gold) and inferred class of 10 million tons grading 0.011 opt gold and 0.10 opt silver. Gold equivalent ounces are 1.2 million ounces in indicated class and 130,000 ounces in inferred class using a ratio of 55 silver ounces to 1 gold ounce. For further information on the Cahuilla project refer to the NI 43-101 technical report entitled “Cahuilla Property 43-101 Technical Report,” filed with Sedar on November 27, 2012.
Dr. Dennis LaPoint, a qualified person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects,” and a Director for Teras is the Company’s nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company’s properties. Dr. LaPoint has reviewed and verified the mining, scientific and technical information contained in this news release. Dr. LaPoint is a registered geologist with the Society of Mining Engineers.
For further project and corporate information, contact:
Teras Resources Inc.
Peter Leger, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.