Bold Ventures Inc., an esteemed mining exploration company based in Toronto, has successfully closed the second tranche of its non-brokered private placement, as per an informative report from GodzillaNewz.
For those unfamiliar with the term, a private placement is a capital-raising event that involves the sale of securities to a small number of selected investors. Usually, these investors include accredited ones, such as institutional investors, banks, mutual funds, insurance companies, pension funds, and endowment funds. These funds would be utilized to advance projects that Bold Ventures is carrying out.
The company has, so far, issued 2,520,000 ‘flow-through’ shares at a price of $0.10 per share, summed up to $252,000. With the completion of this second tranche of the non-brokered private placement, the total gross proceeds accumulated to approximately $377,250.
Flow-through shares, also known as FTS, are a unique form of financing specific to Canada. They serve as a significant tool for financing mineral exploration projects. When a company issues FTS to investors, it renounces or ‘flows through’ tax expenses associated with its Canadian exploration expenses to its shareholders. In this case, Bold Ventures has issued these FTS to its potential investors.
Under the terms, both tranches combined encompass gross proceeds of approximately $377,000. Ontology Systems Inc. was told to find subscribers for this private placement offering. They were further commissioned to aid in coordinating and facilitating the private placement process. In compensation, Ontology Systems Inc. receives a finder’s fee for their crucial services. This fee constitutes 8% of the gross proceeds raised from the services carried out on behalf of the aforementioned subscribers and investors.
Notably, all securities released from this placement are subject to a statutory hold period of four months plus a day. This is a common practice designed to prevent a flood of newly issued securities from hitting the market immediately, which could deflationary pressure on the stock’s price.
The proceeds gleaned from this offering will be deployed strategically by Bold Ventures. Primarily, they will use it to fund Canadian exploration expenses on its various mineral exploration projects across Canada. With these fresh funds, Bold Ventures is looking forward to sustaining and expanding its operations, ensuring project continuity, and bringing their ventures to the new heights.
Therefore, this successful closure of the second tranche of the non-brokered private placement indeed marks a significant milestone for Bold Ventures. It reflects the confidence of investors in the company’s operational strategy and future potential, establishing a strong foundation for the company’s progress in the mining industry.
Moreover, the mined resources’ role cannot be undermined considering their global economic contribution. The closure of this second tranche will inevitably provide a considerable bounce to Bold Venture’s operations, ensuring that the exploration, mining process, and all the necessary ancillary activities can continue unhindered.
