Brunswick Exploration, a Montreal-based exploration company, recently announced a non-brokered private placement offering up to 3 million flow-through common shares at a price of 48 cents per share. This exciting news is expected to provide a new path for growth for the company.
Non-brokered private placements occur when a company sells securities directly to investors without the involvement of any intermediaries or brokers. Such practices may offer considerable cost savings to issuers, since it eliminates the need for broker commissions and other transaction fees. It is aimed to provide ease of conducting business and to furnish the company with an infusion of cash to fund its business activities.
Brunswick Exploration plans to use the net proceeds from the offering to fund qualifying exploration expenditures as per the Canada Income Tax Act. These expenditures are necessary expenditures for determining the existence, location, extent, or quality of a mineral resource located in Canada.
The flow-through shares issued under the offering will be subject to a four-month hold period under applicable securities laws in Canada. The hold-period essentially refers to a specific time during which the shares cannot be sold or transferred. This provision is put in place to prevent shareholders from unscrupulous selling of shares and to secure the interest of all invested parties.
However, it is necessary to understand that the completion of the private placement is subject to the approval of the TSX Venture Exchange. Brunswick Exploration emphasizes that their common shares will not be registered under the United States Securities Act of 1933, nor will they be offered in the United States or to U.S. persons unless an exemption from registration is available.
As for the company itself, Brunswick Exploration Inc. is a publicly-listed mineral exploration company. Publicly listed companies are companies whose shares are traded on one or more stock exchanges. It is well-known that Brunswick Exploration is active in some of the world’s well-known mining jurisdictions including Canada and Chile.
Operating in the Brunswick Belt, the Company’s priority is high-grade gold and base metals, driven by a committed team with a track record in discovery. The prospective geology situated in these high-profile areas presents potential for major explorations and Brunswick Exploration is dedicated to discovering the possibilities of the same.
This latest development showcases the proactive approach by Brunswick Exploration in shaping its future expansion. Despite the necessary approval of the TSX Venture Exchange and the completion of statutory requirements, this strategic move by the company signifies the optimistic and forward-thinking perspective of its management for its future growth.