pcNewsWire – ROUYN-NORANDA, QC, May 25, 2017 – X-Terra Resources Inc. (TSX-V: XTT; FSE: XTR) has held a first closing of previously announced non-brokered private placement, issuing 4,654,166 units at a price of $0.24 per unit for gross proceeds of $1,117,000.
Each of the 4,654,166 units is comprised of one common share and one-half of a common share purchase warrant. Each whole warrant entitles its holder to acquire one additional common share of X-Terra Resources at a price of $0.35 for a period of 24 months from the closing date.
Additional closings may be held until June 19, 2017, subject to a maximum of 5,416,666 units, for total maximum gross proceeds of $1,300,000.
X-Terra Resources will use the proceeds from the first closing of the private placement for exploration on its properties located in the province of Québec and for working capital purposes.
A $100,000 of the private placement was raised with SIDEX, a Quebec institutional fund through its “Field Action 2017” program. The mission of SIDEX is to invest in companies engaged in mineral exploration in the province of Québec.
In connection with the private placement, X-Terra Resources paid cash sales commissions to various securities dealers and finders in an aggregate amount of $10,440. In addition, X-Terra granted finder’s options to Canaccord Genuity Corp. and PI Financial Corp. entitling them to acquire up to an aggregate of 43,500 additional common shares of X-Terra Resources at a price of $0.24 per share for a period of two years.
As a result of the first closing of the private placement, there are 22,915,889 common shares of X-Terra Resources issued and outstanding. Under applicable securities legislation, the securities issued in the private placement are subject to a four-month hold period, expiring on September 26, 2017.
X-Terra Resources Inc. is a resource company focused on acquiring and exploring precious metals and energy properties in Canada.
