Nortec arranges financings to raise up to $750,000

Executive Summary

• Nortec Minerals Corp. announced a non-brokered private placement to raise up to C$750,000 through two distinct tranches: a standard private placement and a flow-through offering.
• The transaction involves the issuance of up to 7.5 million units at $0.05 per unit and up to 5,769,230 flow-through units at $0.065 per unit, with a 15% overallotment option available for both tranches.
• Proceeds are designated for working capital and general corporate purposes, with specific flow-through proceeds allocated to qualifying exploration activities in Ontario, Canada.

Key Details

• Standard Private Placement:
  • Structure: Up to 7.5 million units.
  • Price: $0.05 per unit.
  • Gross Proceeds: Up to $375,000.
  • Overallotment: Up to 15% of the offering.
  • Composition: Each unit consists of one common share and one common share purchase warrant (entitling holder to purchase one additional common share).
• Flow-Through (FT) Private Placement:
  • Structure: Up to 5,769,230 units.
  • Price: $0.065 per FT unit.
  • Gross Proceeds: Up to $375,000.
  • Overallotment: Up to 15% of the total FT offering.
  • Composition: Each FT unit consists of one common share issued on a flow-through basis under the Income Tax Act (Canada) and one warrant (non-flow-through) entitling the holder to purchase one common share.
• Use of Proceeds:
  • Net proceeds from the standard offering: Working capital and general corporate purposes.
  • Net proceeds from the FT offering: Qualifying exploration activities in Ontario, Canada.
• Warrant Terms:
  • Term: 36 months, subject to acceleration.
  • Exercise Price: $0.065 per share during the first 18 months after closing; $0.11 per share thereafter.
  • Acceleration Clause: The company may accelerate the expiry date if the volume weighted average price (VWAP) of common shares on the TSX Venture Exchange (or other primary exchange) exceeds or equals $0.10 over any 10 consecutive trading days between four months and one day following closing and the warrant expiry. Acceleration requires a news release and the new expiry date must be at least 30 trading days after the notice.
• Regulatory and Closing Conditions:
  • Securities are subject to a four-month-and-one-day hold period.
  • Closing is subject to customary conditions, including TSX Venture Exchange approval.
  • The company may pay finders' fees and/or commissions.

Notable Quotes

• No direct quotes from management were included in the provided text.