New Earth Resources arranges $1.75-million financing

Executive Summary

• New Earth Resources Corp. announced a non-brokered private placement to raise up to $1.75 million in aggregate gross proceeds.
• The offering consists of two distinct tranches: standard units and flow-through units, each with specific pricing and warrant structures.
• Proceeds are designated for general working capital, with a specific portion allocated to incurring eligible Canadian exploration expenses (CEE) on Canadian mineral exploration properties.

Key Details

• Total Gross Proceeds: Up to $1.75 million.
• Standard Units:
  • Quantity: Up to 2,000,000 units.
  • Price: 37.5 cents per unit.
  • Gross Proceeds: $750,000.
  • Composition: One Class A common share and one share purchase warrant.
  • Warrant Terms: Entitles holder to purchase one share at $0.50 per share for 36 months from issuance.
• Flow-Through Units:
  • Quantity: Up to 2,222,222 units.
  • Price: 45 cents per flow-through unit.
  • Gross Proceeds: Up to $1,000,000.
  • Composition: One flow-through share and one share purchase warrant.
  • Warrant Terms: Entitles holder to purchase one share at $0.60 per share for 36 months from issuance.
• Use of Proceeds:
  • General working capital.
  • Proceeds from flow-through units specifically used to incur eligible Canadian exploration expenses (CEE) on the company's mineral exploration properties in Canada.
• Transaction Terms:
  • Finders' fees and finder warrants may be issued.
  • Securities subject to a four-month hold period under Canadian securities laws.
  • Insiders are permitted to participate in the offering.