Orestone Mining closes $2.24-million private placement

Executive Summary

• Orestone Mining Corp. has closed a non-brokered private placement raising gross proceeds of $2.24 million.
• The company issued 28 million units at $0.08 per unit, with participation from strategic shareholder Crescat Capital LLC and company insiders.
• Net proceeds will be used to further develop the Francisca property in Argentina, the Captain property in Canada, and for general working capital.

Key Details

• Transaction Structure: Non-brokered private placement.
• Units Issued: 28,000,000 units.
• Price: $0.08 per unit.
• Gross Proceeds: $2,240,000.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant is exercisable for one common share at an exercise price of $0.16.
• Warrant Expiry: December 16, 2026.
• Hold Period: Common shares and warrants are subject to a hold period expiring on April 17, 2026.
• Strategic Investor: Crescat Capital LLC subscribed for 3,094,461 units for gross proceeds of $247,556.88, subscribed through Crescat Portfolio Management LLC on behalf of five pooled investment funds.
• Insider Participation: Directors, officers, and other insiders purchased or acquired direction and control over 5,550,000 units. This constituted a related party transaction under TSX Venture Exchange Policy 5.9 and MI 61-101.
• Regulatory Exemptions: The company relied on exemptions from formal valuation and minority shareholder approval requirements of MI 61-101 because the fair market value of the consideration for insider subscriptions did not exceed 25% of the company's market capitalization.
• Finders' Fees: $14,070 paid in connection with the private placement.
• Use of Proceeds:
  1. Further development of the Francisca property (Salta province, Argentina).
  2. Further development of the Captain property (British Columbia, Canada).
  3. General administrative expenses and working capital.
• Regulatory Status: Subject to final approval of the TSX Venture Exchange. A material change report regarding insider participation will be filed within 21 days prior to closing.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.