Cadillac Ventures (CVE:CDC) has announced an up to $3.0 million private placement financing, with funds to be used for the exploration of its Canadian properties.
The company, under an agreement with Secutor Capital, will issue units at a price of 9 cents each, and flow-through units at a price of 10 cents each.
The offering is expected to close by December, subject to certain conditions, including all necessary regulatory approvals.
Each unit will be made up of one common share and one share purchase warrant, while each flow through unit will consist of one common share to be issued on a "flow-through" basis and one half of one warrant.
Every whole warrant will allow the holder to acquire another common share of the company at a price of 15 cents, for a period of 18 months from closing.
The new funds from the flow-through units will be used for the exploration and development of its Canadian properties, Cadillac said, while the funds from the unit offering will be used for general working capital.
Cadillac's expenditures will qualify as "flow through mining expenditures" as defined in the Income Tax Act of Canada.
The company also said Tuesday that existing shareholder Urion Mining International, which holds around 26 per cent of Cadillac, may choose to participate in the financing to maintain its stake.
If Urion participates in the offering, Cadillac said it will be exempt from obtaining both a formal valuation and minority shareholder approval for the financing because neither the fair market value of the securities to be issued to Urion, nor the consideration for such securities, exceeds 25 per cent its market cap.
In September, Cadillac released results from its summer drilling program on the K1-1 open pit deposit at its Thierry project in northwestern Ontario, which management called "a success".
The program consisted of 7,218 feet, designed to deepen and widen the K1-1 pit.
The company said the campaign was deemed a success as each hole encountered mineralization outside of the current NI 43-101 compliant Whittle Pit model. The holes returned grades comparable to, or better than, those within the current Whittle Pit defined resource, said Cadillac at the time.
The results included 225 feet at 0.48% copper and 0.11% nickel, as well as 160.2 feet at 0.51% copper and 0.1% nickel.
Cadillac's Thierry property, near Pickle Lake, Ontario, consists of the past producing Thierry Mine and hosts two NI 43-101 compliant resources at the Thierry Mine and the K1-1 deposit.
The company said it anticipates it will be updating the resource at K1-1, and is currently focused on the drill program targeting "further positive results" outside the current pit.
Aside from the Thierry project, Cadillac also holds a 51 per cent interest in the Burnt Hill project, a historic tungsten/tin mine taken to test production by Brewster for Canadian International Paper during the early 1980s.
The company is aiming to restart development at the project.
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