On Monday, Nevada Sunrise Gold Corporation announced that it has received final TSX Venture Exchange approval for its previously announced non-brokered private placement. The company closed its final tranche of the private placement and raised an aggregate of $1,168,000 through the issuance of 6,434,232 flow-through units at a purchase price of $0.18 per unit.
The funds from this offering will be used by Nevada Sunrise primarily for exploration and development of the company’s Nevada-based projects, like the Gold Rock Project. The placement was oversubscribed and the board expressed its gratitude to existing shareholders, new shareholders, and strategic partners for their participation and support.
The flow-through units were offered at an offering price of $0.18 per unit and came with one non-flow-through common share. Each non-flow-through share is subject to a four-month and one-day resale restriction and will be subject to a hold period of four months and one day expiring on June 22, 2020. The company has paid a non-accountable cash commission in the amount of $19,713 and issued 106,286 broker warrants exercisable into common shares at the price of $0.20 each, for a period of two years.
The board also announced that it has closed a separate non-brokered private placement of 1,333,333 non-flow through units at a purchase price of $0.15 per unit for proceeds of $200,000. These funds will be used for general working capital.
The completion of its private placement will improve the near-term financial position of the Nevada Sunrise and allow the company to fast-track the exploration and development of its Gold Rock Project project. This will further bolster the potential returns of its project and ultimately the value of the company.