X-Terra Resources Closing of a Strategic Private Placement
X-Terra Resources Closing of a Strategic
Private Placement
ROUYN-NORANDA, QC
,
Aug. 7, 2020
/CNW Telbec/ - X-Terra Resources Inc. (TSXV: XTT)
(FRANKFURT: XTR) is pleased to announce the closing of a strategic non-brokered private
placement in which it issued 7,000,000 units at a price of
$0.10
per unit, for gross proceeds to X-
Terra of
$700,000
. Each of the 7,000,000 units comprises of one common share and one common
share purchase warrant. Each warrant entitles its holder to acquire one additional common share of
X-Terra at a price of
$0.15
until
August 7, 2022
. X-Terra intends to use the proceeds from the
private placement for exploration on certain of its mining exploration properties in Québec and
New
Brunswick
, and for working capital purposes.
One (1) insider of X-Terra participated in the placement for proceeds of
$100,000
. This insider
subscribed to the Units under the same terms as the other investors. The participation of this insider
is exempt from the formal valuation and shareholder approval requirements as per Sections 5.5(a)
and 5.7(1)(a) of Regulation 61-101 respecting Protection of Minority Holders in Special
Transactions. The exemption is based on the fact that the market value of such participation or the
consideration paid by such insider does not exceed 25% of the market value of the Company.
In connection with the private placement, X-Terra Resources paid cash commissions to three
securities dealers in the aggregate amount of
$31,850
. In addition, X-Terra Resources issued
finders' options to the securities dealers entitling them to acquire up to an aggregate of 318,500
additional common shares of X-Terra at a price of
$0.10
per share until August 7, 2022.
As a result of the closing of the private placement, there are 70,352,553 common shares of X-Terra
issued and outstanding. Under applicable securities legislation, the securities issued in the private
placement are subject to a four-month hold period, expiring on
December 8, 2020
.
About X-Terra Resources Inc.
X-Terra is a resource company focused on acquiring and exploring precious metals properties in
Canada
.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
the release.
SOURCE
X-Terra Resources Inc.
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http://www.newswire.ca/en/releases/archive/August2020/07/c8210.html
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For further information:
X-Terra Resources Inc., Michael Ferreira, President and Chief Executive
Officer, Rouyn-Noranda, Québec, Telephone: 819-762-4101 | Fax: 819-762-0097, E-mail:
[email protected], Website: www.xterraresources.com
CO: X-Terra Resources Inc.
CNW 16:05e 07-AUG-20