Astra Exploration Announces Closing of C$6.25 Million Bought Deal Private Placement, Including Partial Exercise of the Underwriters' Option

Executive Summary

• Astra Exploration Inc. closed a private placement of 10,080,690 common shares at C$0.62 per share, raising gross proceeds of C$6.25 million.
• Net proceeds are earmarked for exploration work on the La Manchuria project and general working capital.
• The offering was led by Cormark Securities with participation from insider Michael Gentile; underwriting commission was 6% (reduced to 3% for president’s‑list orders).

Key Details

• Offering Size: 10,080,690 common shares sold.
• Price per Share: C$0.62.
• Gross Proceeds: C$6,250,027.80 (includes partial exercise of underwriters’ option).
• Underwriters: Lead underwriter and sole bookrunner – Cormark Securities Inc.; co‑underwriters – Beacon Securities Limited and Research Capital Corporation.
• Use of Proceeds: Primarily for exploration expenditures on the La Manchuria gold‑silver project in Santa Cruz, Argentina; remainder for general working capital as described in the offering documents.
• Commission Structure: Cash commission to underwriters equal to 6% of gross proceeds, reduced to 3% for orders placed on the president’s list.
• Insider Participation: Michael Gentile (existing shareholder/insider) purchased 282,300 shares for C$175,026; transaction qualifies as a related‑party transaction but is exempt from formal valuation and minority‑shareholder approval under MI 61‑101.
• Regulatory Exemptions: Shares sold pursuant to NI 45‑106 prospectus exemptions (Part 5A.2) and Coordinated Blanket Order 45‑935; no hold period in Canada.
• U.S. Securities Law Disclaimer: Securities not registered under the U.S. Securities Act; cannot be offered or sold in the United States absent registration or exemption.
• TSX Venture Exchange Approval: Offering remains subject to final approval by the TSX Venture Exchange.

Notable Quotes

(No direct quotes were included in the release.)