Closed a First Tranche of a Private Placement of Unsecured Convertible Debentures
Rouyn-Noranda, April 13, 2017 AEST (ABN Newswire) - Explor Resources Inc. ("Explor" or the "Corporation") (
CVE:EXS) (E1H1:FRA)(EXSFF:OTCMKTS) announces that it has closed a first tranche of a non-brokered private placement of a maximum of $900,000 (the "Placement"). The Placement consists of a total amount of 900 units at a price of $1,000 per Unit (the "Units"), each Unit consisting of a capital amount of $1,000 of unsecured convertible debentures (the "Debentures") and of 6,667 common share purchase warrants of the Corporation (the "Warrants"). The Debentures bear interest at an annual rate of 8% and expire in two years from each closing of the Placement. Each holder of Debentures will be entitled to convert the principal amount of the Debentures in common shares of the Corporation, at a price of $0.075 per share, for the first year and at a price of $0.10 for the second year. Each Warrant included in a Unit will allow the subscriber to purchase one common share of the Corporation at an exercise price of $0.12 for a period of two years from the date of each closing of the Placement. Therefore, the Corporation will reserve a maximum number of 12,000,000 common shares of its capital stock pursuant to the terms of the Placement, in the event of the conversion of the full principal amount of the Debentures and an aggregate number of 6,000,000 of its capital stock in the event of the exercise of all the Warrants comprised in the Units.
The first tranche of the Placement, closed today, consists in the sale of 570 Units at a price of $1,000, representing an amount of $570,000. The Corporation then reserved 7,600,000 common shares of its share capital in the event of the conversion of the full principal amount of the debentures subscribed and issued 3,800,000 Warrants in connection with the closing of this first tranche of the Placement.
In connection with the Placement, a total of 608,000 non-transferrable warrants will be issued to Finders dealing at arm's length with the Corporation. Each warrant will be exercisable at $0.075 per common share of Explor for two (2) years from the closing date of the Placement.
The Debentures and any shares that may be issued on conversion of the Debentures, as well as the shares that could be issued on exercise of the Warrants and of the finders' warrants are subject to a hold period of four months and one day, following the date of each closing of the Placement.
The Placement is subject to the final approval of the TSX Venture Exchange.
About Explor Resources Inc.
Explor Resources Inc. (CVE:EXS) (OTCMKTS:EXSFF) (FRA:E1H1) is a Canadian-based natural resources company with mineral holdings in Ontario, Quebec, Saskatchewan and New Brunswick. Explor is currently focused on exploration in the Abitibi Greenstone Belt. The belt is found in both provinces of Ontario and Quebec with approximately 33% in Ontario and 67% in Quebec. The Belt has produced in excess of 180,000,000 ounces of gold and 450,000,000 tonnes of cu-zn ore over the last 100 years. The Corporation was continued under the laws of Alberta in 1986 and has had its main office in Quebec since 2006.
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