Demesne Announces Completion of Second Tranche of Private Placement Financing
- 16-Dec-2024 3:30 PM
- Journalist: Patrick Knight
Demesne Resources Ltd. has announced the successful closing of the second tranche of its previously announced non-brokered private placement financing, The financing, which was conducted at a price of $0.25 per share, raised approximately $873,901 through the issuance of 3,495,603 common shares of the Company.
This latest tranche forms part of an ongoing effort by Demesne to secure funding for the continued development of its mineral exploration projects, including the IMA Mine Project and the Star Project. According to the Company, the second tranche proceeds will be utilized to support various exploration activities, project-related payments, marketing efforts, and general working capital purposes.
Demesne has also indicated that it plans to complete a subsequent tranche of the Offering in December 2024, which is expected to raise up to $839,599 in gross proceeds. The ongoing financing efforts reflect the Company's commitment to advancing its key projects in both Canada and the United States, while also fortifying its financial position for future growth.
As part of the Second Tranche, Demesne paid finder's fees to eligible finders, which included $1,050 in cash and 4,200 common share purchase warrants. Each Finder’s Warrant is exercisable at a price of $0.25 per share for a period of 12 months from the date of issuance. The finder's fees are a customary component of private placement transactions, and these warrants provide an additional incentive for those who helped bring the offering to market.
The securities issued in connection with the Second Tranche are subject to a four-month hold period, which begins on the date of issuance. This is in accordance with applicable securities legislation in Canada, meaning that investors will not be able to trade these shares on the open market until April 2025.
The proceeds from the Offering will be directed toward several key areas, primarily focused on advancing Demesne’s mineral exploration initiatives. The Company plans to allocate funds to payments related to option agreements for its two significant exploration properties: the IMA Mine Project and the Star Project. These payments will help Demesne continue its efforts to earn a 100% interest in both properties.
In addition to project-specific funding, Demesne will use the proceeds for work program expenses related to exploration and development activities, marketing expenses, and general working capital. This comprehensive use of funds is part of Demesne's broader strategy to expand its portfolio of magnetite mineral properties and enhance shareholder value.
About Demesne Resources Ltd.
Demesne Resources Ltd. is a British Columbia-based exploration company specializing in the acquisition and exploration of magnetite mineral properties. The Company’s flagship Star Project is a large property located in the Skeena Mining Division of British Columbia, spanning approximately 4,615.75 hectares.
Demesne also holds an option agreement for the IMA Mine Project, a past-producing tungsten mine in East Central Idaho, USA. The project is located on 22 patented claims and offers Demesne the potential to acquire a 100% interest in the mine, subject to a 2% royalty.