VanadiumCorp Resource Inc. (TSXV:VRB) (OTC:APAFF) (FSE:NWN)(the “Company”) is pleased to report its previously announced non-brokered private placement financing (the “Financing”) of up to $1.5 million has been increased to $1,632,940 and the Company has filed documents with the TSXV Exchange (“Exchange”) seeking final approval to close the Financing.
TheFinancing consists of 16,329,400 units (“Units”), with each Unit pricedat $0.10 per Unit for gross proceeds of $1,632,940. Each Unit consists of one common share of the Company and one common share purchase warrant, each warrant entitling the holder to acquire an additional common share at an exercise price of $0.18 for a period of two years.
Subject to Exchange approval, cash finders’ fees in the amount of $24,400 will be paid and 244,000 non-transferable broker warrants will issued on the same terms as the Unit warrants.
Seven (7) insiders of the Company have subscribed for 3,879,400 Units for proceeds of $387,940, which participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Such participation is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
All securities issued pursuant to the Financing will be subject to a four (4) month hold from date of issue.
Net proceeds from the Financing will be used for exploration and metallurgical testing on the Company’s wholly owned mineral properties, procurement for the Company’s previously announced first electrolyte manufacturing facility and general corporate purposes.
About VanadiumCorp Resource Inc.
VanadiumCorp Resource Inc. seeks to produce a reliable stream of high-quality vanadium electrolytes for the expanding international market for long-duration Vanadium Redox Flow Batteries (VRFB). The Company’s initial manufacturing facility is based in Val-des-Sources, Québec. Stable, long-term access to vanadium feedstock for the electrolytes is assured, contingent on successful development of our wholly-owned vanadium-titanium-iron mineral deposits. Our flagship project is the Lac Doré property near Chibougamau, Québec.
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