Tanzania Minerals closes private placement offering
Tanzania Minerals Corp. has announced the closing of a private placement offering of $629,993.88 of gross proceeds based on the issuance of 6,999,932 units at a price of $0.09 per Unit.
Each Unit consists of one common share and one common share purchase warrant. Each Warrant entitles the holder to acquire one common share at an exercise price of $0.12 until July 4, 2019, with a restriction on the exercise of the warrants in the event that the holder would own more than 9.99 per cent of the issued and outstanding common shares of the Company as a result of such exercise. The Company paid arm’s length finder’s fees of $36,605.63.
The Common Shares and Warrants are subject to a resale restriction until November 5, 2018. Closing of the Offering remains subject to receipt of all necessary regulatory approvals, including final approval of the TSX Venture Exchange.
One of the directors and the spouse of one of the directors of the Company acquired a portion of the Offering, and their participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101. The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
The net proceeds of the private placement will be used for the repayment of debt as well as for general corporate purposes.